The effects of flaxseed (FS) processing and inclusion levels on broiler performance and fatty acid deposition were examined. FS was provided as whole seed, ground or pellet-then-mashed at a dietary level of 0, 12 or 14% during days 1 to 21. These levels represented control, threshold and over-threshold, respectively. During days 22 to 40, the threshold level was increased to 15%, while the over-threshold level increased to 17%. After 21 days of feeding, the performance of birds fed a diet with 12% pellet-then-mashed FS were comparable (p > 0.05) with those fed mashed control diet, but superior to those fed a diet of whole FS (p < 0.05). There was interaction (p < 0.05) between diet processing and FS level on weight gain, with pellet-then-mash processing being more effective at the 12% FS inclusion level than at the 14% level in improving performance. The beneficial processing effect on performance diminished during days 22 to 40. Furthermore, carcass cut-up percentage was not affected (p > 0.05) by the treatments, except that increased FS level resulted in smaller fat-pad and larger liver (p < 0.05). Birds deposited omega-3 (n-3) fatty acids in breast and thigh muscle the most with higher FS inclusion and pellet-then-mash processing. On day 40, the total n-3 fatty acids made up 22.1 and 24.4% in the muscle lipids of breast and thigh samples from birds fed pellet-then-mashed FS at the level of 12% during days 1 to 21 and at the level of 15% during days 22 to 40, respectively. These values were higher (p < 0.05) than those found in birds fed diets of similar FS levels but as whole seed or ground seed. Up to 12% pellet-processed FS can be incorporated into broiler diets with satisfactory growth, while maximizing n-3 fatty acid deposition in the tissues.