To investigate the effects of sago palm pith (SPP) substitution of corn in the diets on intake, digestibility, rumen fermentation characteristics, nitrogen balance and microbial N Supply, five ruminally fistulated Southern indigenous cattle (mean initial BW = 226±5 kg) were randomly assigned to a 5×5 Latin Square Design to receive five diets, T 1 = concentrate with 0% SPP, T 2 = 25% SPP, T 3 = 50% SPP, T 4 = 75% SPP and T 5 = 100% SPP, of dietary dry matter, respectively. Plicatulum hay (PH) was offered ad libitum as the roughage. A metabolism trial lasted for 21 days during which liveweight changes and feed intakes were measured. Based on this experiment, there were no significant differences (p>0.05) among treatments groups regarding total DM intake (OMI, NDFI and ADFI) and digestion coefficients of nutrients (DM, OM, CP, NDF and ADF), while total DM intake (% BW) was significantly (p<0.05) higher as higher levels of SPP were incorporated into diets. Rumen parameters (ruminal temperature, pH, glucose, packed cell volume, volatile fatty acid and rumen microorganism populations) were similar among treatments (p>0.05), whereas NH 3 -N, blood urea nitrogen and molar proportion of propionate concentrations were significantly (p<0.05) higher as higher levels of SPP were incorporated into diets. The amount of N absorption, N retention and microbial protein synthesis were similar among treatments. These results indicate that SPP can be included in diets for Southern indigenous cattle to supply up to 100% of supplemental corn when fed with PH without negative impact on animal performance and it was a good approach in exploiting the use of local feed resources for beef cattle production.