Sheep farming in Greece is focused on milk production. Meat is considered a by-product and consists mainly light carcasses of undefined quality. The main challenge of the sector is to ensure sustainability, and hence efforts are towards efficient use of available resources, including undervalued carcasses of local fat-tailed sheep. The objective here was twofold: (i) to assess the carcass quality of fat-tailed sheep slaughtered at different live weights and (ii) to compare them with carcasses from thin-tailed sheep. In total, 146 fat-tailed and 97 thin-tailed dairy sheep were used. They belonged to five live-weight categories (LWC), representing 25%, 35%, 50%, 70% and 100% of mature body weight. Carcass length/weight/yield/pH and wither height were recorded. Muscle fiber minimum Feret’s diameter and meat color/tenderness/moisture/lipid and protein content were determined. Sex and LWC differences in fat-tailed sheep were assessed. Parametric and non-parametric tests were used to compare with thin-tailed sheep, considering the effects of LWC, sex and their interactions with sheep population (fat-tailed/thin-tailed). Most traits were significantly different (p < 0.05) between groups of fat-tailed sheep. Carcass yield of fat-tailed sheep was significantly higher compared to thin-tailed (p < 0.01). Interactions of sheep population with LWC or sex affected wither height, carcass pH, meat color and tenderness (p < 0.05). Fat-tailed sheep meat quality is equal or higher compared to thin-tailed. Finishing weights corresponding to 50 and 70% LWC may improve capitalization of fat-tailed carcasses.