The aim of the present study was to investigate the effects of induction hypothyroidism by propylthiouracil (PTU) on the growth performance and meat quality of fat-tailed Lori-Bakhtiari lambs. Eighteen Lori-Bakhtiari male lambs were randomly assigned to one of three groups (n = 6) and received daily treatments (gavage) consisting of 0 (Control: C), 10 (Low: L) or 20 (High: H) mg PTU/kg bodyweight/day for 60 days. PTU decreased plasma triiodothyronine and thyroxine concentration in both L and H (P < 0.0001). Lambs treated with PTU (L and H) had lower feed intake (P < 0.004), feed conversion efficiency (P < 0.003), and greater intramuscular fat than C lambs (P < 0.035). Meat from the L and Hlambs had lower cooking loss and shear force, and also higher L* (lightness) than C lambs (P < 0.004, P < 0.015 and P < 0.025, respectively). The meat of Hand L lambs was more tender than C lambs (P < 0.032). However, the meat of Hlambs required fewer chews before swallowing than Clambs (P < 0.041). Generally, induction of mild hypothyroidism appeared to improve feed conversion efficiency and meat quality of lambs.