This study aimed to evaluate levels of yerba mate (Ilex paraguariensis) extract (YME), as a feed additive in the diets of growing lambs on serum biochemical parameters and hematological indices, animal performance, body metrics and carcass traits. Thirty-six entire (nine per treatment), male growing lambs, weighing 23.8 ± 3.7 kg, were fed the experimental diets which were treatments consisting of increasing levels of YME (0, 1, 2, and 4% inclusion on a dry matter [DM] basis) during an experimental period of 53 days. The experiment was carried out in a randomized block design, which initial body weight was used as blocking factor and the results were analyzed by orthogonal contrasts (linear, quadratic, and cubic). Yerba mate extract did not change the general health status of the animals; however, inclusions of up to 2% of the extract increased globulins (p = 0.05) and white blood cell count, as segmented neutrophils (p = 0.02) and lymphocytes (p = 0.04). Additionally, inclusion of up to 2% YME increased dry matter intake, final weight gain, total and daily gain (p < 0.05), also tended to increase ribeye area and reduce fat thickness (p < 0.10); however, YME above 2% of inclusion reduced animal productive parameters (p < 0.05). In conclusion, levels up to 2% of YME were beneficial to the health and productive parameters of growing lambs.