This study was conducted in two separate experiments. Four rumen-cannulated sheep were allocated in the first experiment to evaluate date by-product (DBP) and date seed (DS) nutrients degradation in rumen. In experiment two eighteen fattening lambs were allocated in three different treatments (6 animals/treatment) to evaluate DBP effects on animal performance and nutrients’ digestibility. Three experimental treatments were as follow; 1) control group (C, diet without DBP inclusion), 2 and 3) diets with DBP at two inclusion levels of 10(DBP10) and 20(DBP20) %, respectively. The performance trial lasted 90 days. The results of degradation kinetics showed that both wash out fraction (a) and potentially degradable fraction (b) were greater in DBP compared to DS for dry matter (DM), organic matter (OM) and neutral detergent fiber (NDF) degradation. Effective degradability for DM, OM and NDF was differed between DBP and DS in all measured passage rate times. Results of the performance trail revealed that inclusion of 20% DBP de-creased daily gain (DG) and hence increased feed conversion ratio (FCR; 7.1, 7.7 and 8.6 for C, DBP10 and DBP20, respectively). Daily gain was 210, 200 and 160 g/d for C, DBP10 and DBP20; respectively show-ing that inclusion of 20% decreased gain but the inclusion of 10% had an acceptable gain compared to con-trol treatment. The diet cost was decreased by inclusion of DBP. Considering the degradation rate of DBP in rumen and also the performance trial results, it could be suggested that limited inclusion of DBP in sheep diet could decrease dietary costs and improve economic efficiency without reducing gain or efficiency in intensive lamb fattening system.