The effect of intravaginal fluorogestone acetate (FGA) sponges on prolactin levels (PRL) and correlations between PRL and milk somatic cell count (SCC) and steroid hormones levels of Damascus-local cross goats during transitional period to anestrous were investigated in this study. Fifty-six goats were assigned to three groups. Group 1 (FGA, n = 19) was treated with 40 mg FGA and equine chorionic gonadotropin (600 IU, i.m.) at time of sponge withdrawal (day 0). Group 2 (FGA-PGF; n = 19) was treated similar to group 1 but was also injected with dinoprost tromethamine (naturally occurring PGF2α) (10 mg, i.m.) on day 0. Control goats (n = 18) were left untreated. On day 0, five fertile bucks were turned in with all goats. Milk and blood samples were collected on days -13 (day of sponge insertion), -6, 0, 1, 2, 7, 13, and 20. Prolactin levels were at lowest values on day -13 of the study and increased (p < 0.05) from day -6 to day 20 in all groups. A significant positive correlation (p < 0.05) between PRL and progesterone and between PRL and estradiol levels was found in this study. No significant correlation was found between PRL and SCC of all groups during the study except on days 2 and 20 where PRL levels were correlated (p < 0.05) with SCC of left udder halves of FGA group. In conclusion, estrus induction with FGA resulted in significant increase in PRL. A positive correlation was found between PRL and steroid hormones, but there was no correlation between PRL and goat milk SCC.