An experiment was conducted to compare the effect of housing system on performance of pigeons. A total of 16 pair of parent Baladi pigeons (6-7 months old) were distributed equally according to their consistent mating systems (sex ratio of pigeons 1:1) to 2 treatments 8 pairs (4 replicates of 2 pairs each). Birds were reared under similar environmental conditions. The first group was housed indoor system and served as a control (C). The second group (treatment) was housed in outdoor system. Feed and water were offered ad libitum along the experimental period. Results obtained are summarized as follow:1- Housing system had significant (P≤0.05) effect on squabs weight gain at 28 days of age, mortality percentage and economic efficiency. 2- Indoor system decreased feed intake for pigeons without or with squabs. 3- Egg number, egg weight, fertility and hatchability were significantly (P≤0.05) increased in outdoor system. 4- Pigeons reared in indoor system had significantly the highest number of weaned squabs, body weight and weight gain during 28 days of age. It can be concluded that pigeons housed indoor system gave the best squabs performance as compared with outdoor system. However, pigeons housed outdoor system was better than the indoor system for reproductive performance of local Baladi pigeons.