The study evaluated the potential of blends of eucalyptus oil and aqueous extract of mulethi (root of
Glycyrrhiza glabra
) to reduce rate of ruminal ammonia production without affecting feed digestion to improve nitrogen utilization efficiency and performance of Murrah buffalo (
Bubalus bubalis
). Based on preliminary independent studies with graded doses of eucalyptus oil and mulethi root aqueous extract in modulating
in vitro
rumen fermentation, four blends of feed additive comprising graded doses (5, 10, 15, and 25 μL) of eucalyptus oil and a fixed quantity (15 μL) of aqueous extract of mulethi roots were prepared and examined for their effects on
in vitro
rumen fermentation and on methane and gas production in 100-mL calibrated glass syringes by standard IVGP protocol. Rumen liquor was collected from four rumen fistulated Murrah buffaloes fed a total mixed ration. Out of four blends, blend-1 comprising 5 μL of eucalyptus oil and 15 μL of aqueous extract (233.6 g/L DW) of mulethi per 40 mL of
in vitro
medium was found to reduce ammonia production significantly (
p
< 0.001) without affecting feed digestibility. An equivalent dose of blend-1 (10.5 mL of eucalyptus oil and 7.35 g of mulethi root powder/h/day) fed to four rumen fistulated buffaloes for 24 days resulted in 50% reduction (
p
< 0.05) in rumen ammonia level with no inhibition in feed fermentation or short-chain fatty acid production. The total bacterial population including
Ruminococcus albus, Fibrobacter succinogenes, Butyrivibrio fibrisolvens
, and
Megasphaera elsdenii
as well as anaerobic fungi and methanogenic archaea remained unaffected (
p
> 0.05). Twelve buffalo calves (avg. BW 137.5 ± 9.2 kg, 8–12 months old) divided into two groups of six each and fed a total mixed ration (concentrate: roughage; 60:40) with or without supplementation of blend-1 for about 3 months demonstrated 14% increase (
p
< 0.05) in average daily gain in BW with a trend (
p
< 0.10) in improvement of feed or protein utilization efficiency (1.4 vs. 1.1 g crude protein/g average daily gain; 21.4% increase). Thus, supplementation of eucalyptus oil–mulethi root blend could reduce ruminal ammonia production and improve feed utilization efficiency in ruminants.