We investigated the effects of corn grain, finely or coarsely ground, rehydrated and ensiled to 35% moisture in substitution of dry corn grain on performance of beef cattle in the feedlot. Forty non-castrated young Angus crossbred bulls with average age of 13±1.4 months and average initial body weight (BW) of 374±14 kg. The experiment was conducted in blocks by weight, and bulls were randomly assigned into four groups of five animals each in a 2 × 2 factorial scheme. The factors evaluated were particle size (finely and coarsely ground) and two grain sources (dry ground corn and rehydrated corn grain silage). The treatments were diets containing dry corn grain, finely ground (DCF; 1.86 mm); dry corn grain, coarsely ground (DCC; 3.53 mm); rehydrated and ensiled corn grain, finely ground (RCF; 1.86 mm); and rehydrated and ensiled corn grain, coarsely ground (RCC; 3.53 mm). Initial BW, final BW, average daily gain (ADG), feed efficiency, and intake of dry matter (DMI), acid detergent fiber, and metabolizable energy were not affected by treatment. Ensiling corn grain decreased DMI by 10.3% (11.6 vs. 10.4 kg/d for dry and ensiled, respectively) and increased feed efficiency by 13.3% (0.13 vs. 0.15 kg/d for dry and ensiled, respectively), but there was no effect of particle size, grain source, and their interaction on ADG. Effects of particle size and grain source were observed for fecal starch and total tract starch digestion, with evidence that treatments containing rehydrated corn diets showed greater efficiency in the utilization of dietary starch. Animals fed RCF diets showed lower fecal starch losses of 37, 55, and 75% when compared with treatments RCC, DCF, and DCC, respectively. Our results suggested that ensiled rehydrated corn grain improves feed efficiency in substitution of dry corn grain. The finely and coarsely ground of rehydrated and ensiled corn grain increases the digestibility of starch for finishing cattle in feedlot.