In Brazil, grazing is the main or only source of food for livestock. The appropriate combination of supplementation with concentrate in a lamb’s diet on pasture is an alternative that can be explored to use natural resources to produce quality meat. The aim of the current study was to evaluate the effects of different supplementation levels (0%, 1.5%, and 3% of BW) on the intake, performance, and production costs of lambs grazing on Aruana (Megathyrsus maximus) and Marandu (Brachiaria brizantha) grasses. Thirty-six non-castrated male Suffolk lambs (22.54 ± 2.72 kg) were used. The lambs were evaluated for nutrient intake and digestibility, such as dry matter (DM), crude protein (CP), neutral detergent fiber (NDF), acid detergent fiber (ADF), and consumption in relation to body weight (% BW), in addition to the average daily gain (ADG), body condition score (BCS), and hot carcass weight (HCW), as well as the rising production cost of each system. The dry matter of the green leaf blades was influenced by the pasture type (p < 0.05), producing 1503.6 vs. 2977.4 kg/ha of Aruana and Marandu grasses, respectively. The concentrate supplementation level influenced the type of pasture (p < 0.05). A higher consumption of DM, CP, NDF, and organic matter was registered for the supplemented animals (p < 0.05) and on Aruana grass. The intake in relation to body weight was significantly influenced by the concentrate levels (p < 0.05). The empty body weight and HCW were significantly influenced by the supplementation levels (p < 0.05). The ADG and feed conversion (FC; kg DM/ADG) were influenced by the supplementation levels and type of pasture. The BCSs differed between the concentrate levels (p < 0.05). The supplementation improved dry matter digestibility. The ADG and FC were superior in the supplemented animals, with an advantage for those grazing on Aruana grass. The slaughter ADG was also higher in the supplemented animals. The lambs’ pasture comprising Aruana grass with 1.5% BW of concentrate supplementation showed improved production and economic results.