Seventy-two crossbred wether lambs (average initial weight, 25.1 kg) were used to determine the interaction between zeranol treatment and two dietary levels of Ca and P (.8 and .6% vs .4 and .3% Ca and P, respectively) in a 2 x 2 factorial arrangement on performance, carcass and bone characteristics, and serum concentrations of parathyroid hormone (PTH) and Ca. Lambs were implanted on d 0 and 56 with 12 mg of zeranol. Lambs had ad libitum access to feed for 105 d. On d 99, blood samples were collected. Implanted lambs had 12% greater (P less than .01) daily feed intake, 26% greater (P less than .10) ADG, and a 12% improvement in (P less than .10) feed efficiency compared with nonimplanted lambs. Zeranol-treated lambs had increased (P less than .05) bone cortical area, breaking load, and width of the metacarpal compared with nonimplanted lambs. Lambs fed the .8% Ca and .6% P diet had a higher (P less than .05) percentage of bone ash than lambs fed the .4% Ca and .3% P diet. However, there were no differences (P greater than .05) in the percentage of Ca, P, Mg, or Zn in metacarpal bones due either to higher dietary Ca and P or to implant treatments. Serum concentration of PTH was greater (P less than .10) in lambs fed .8% Ca and .6% P than in those receiving .4% Ca and .3% P. Serum concentrations of PTH and Ca pooled across treatments were greater (P less than .05) before feeding than at 1 h after feeding.(ABSTRACT TRUNCATED AT 250 WORDS)