Urea is a common ingredient of the diets of intensively fed lambs, but is increasingly required for industrial processes. Maize steep liquor (MSL) is a by-product of maize grain degradation to produce starch that may be a suitable replacement. Fifty growing lambs were fed on equinitrogenous diets in which between 0% and 80% of the urea was replaced by MSL; their growth and metabolism were recorded over 70 days. Increasing replacement of urea by MSL increased feed intake and nutrient digestibilities, leading to increased growth rates, more efficient feed conversion, and increased nitrogen retention. Concentrations of triiodothyroxin, thyroxin, glucose, and methionine were increased by replacement of urea by liquor, and plasma urea was reduced. This study suggests that MSL is a suitable replacement for up to 80% of urea in the diet of rapidly growing lambs.