The effects of dietary level and formaldehyde treatment of corn on ruminal and intestinal digestion of starch and nitrogen (N), N metabolism, and concentration of plasma metabolites were determined. Four wethers (average wt 32 kg) with duodenal and ileal cannulae were fed diets containing either formaldehyde-treated or untreated corn at 50 or 75% of total dietary dry matter intake. The design was a 4 × 4 Latin square with a 2 × 2 factorial arrangement of treatments. Starch digested in the stomach (percentage of intake) was reduced 38% (P < 0.01) by formaldehyde treatment of corn, whereas starch digested in the small intestine (percentage of intake or of flow to small intestine) was increased (P < 0.01) by formaldehyde treatment. An increase (P < 0.01) in starch digested in the small intestine (as a percentage of intake and flow of starch to the small intestine) was observed for treated corn vs. untreated corn at both the 50 and 75% levels. The magnitude of improvement in N retention for formaldehyde-treated vs. untreated corn was dependent on the level of corn in the diet (interaction, P < 0.01). Concentrations of plasma glucose were 21% greater (P < 0.05) when wethers were fed treated corn than when they were fed untreated corn. Wethers fed treated corn also had lower (P < 0.05) concentrations of plasma urea N and essential amino acids than when they were fed untreated corn. These data suggest that formaldehyde treatment of corn shifted the site of digestion of a large proportion of dietary starch from the fore-stomach to the small intestine. Formaldehyde treatment of corn enhanced metabolic utilization of amino acids as reflected by improved N retention, decreased concentrations of essential amino acids and urea N in plasma. Key words: Sheep, formaldehyde, starch, corn, digestion, metabolism