Full-fat canola seed (22.5% crude protein (CP) and 42.4% crude fat on a dry matter (DM) basis) was evaluated in the diets of finishing South African Mutton Merino lambs, Four diets were formulated on an iso-protein basis (approximately 15.2% CP on an as-fed basis) so that fishmeal and barley were gradually substituted by increasing levels of full-fat canola (0, 6, 12 and 18%). The lambs (n = 60) were fed ad libitum from 18 to 41 kg while housed individually. No significant differences occurred in the daily DM intake (DMI) of lambs consuming the four different diets. Lambs on the diet with 0% full-fat canola tended to grow 14% (P < 0.10) slower than lambs on the diet with 6% full-fat canola and had a 21% lower (P < 0.05) feed conversion ratio (FCR) than lambs on diets with 6, 12 or 18% full-fat canola. It is concluded that although DMI decreased by 36 g per lamb per day with every 6% increment of full-fat canola inclusion, an increase in full-fat canola inclusion of up to 18% had no negative influence on the average daily gain (ADG) or FCR of lambs. (C) 2001 Elsevier Science B.V. All rights reserved.