The present study was designed to investigate the effect of including dried guava waste (GW) in diets of Ossimi lambs on growth performance, apparent diet digestibility, carcass characteristics and economic efficiency. Eighteen Ossimi male lambs (average body weight of 28.4±1.7kg) were divided randomly into three experimental groups (6 lambs each). Control group was fed diet based on corn and soybean meal, GW was added as a feed ingredient in the diet at levels of 10% and 20% and fed to other groups (D1 and D2), respectively for 12 weeks. Animals were housed individually in clean and hygienic pens. Body weight was measured weekly and feed consumption was recorded daily. Digestibility trial was conducted and digestion coefficient was calculated for diet dry matter (DM) and nutrients. At the end of study, three animals from each group were slaughtered and carcass traits were evaluated. At the end of experiment, blood samples were collected for analysis and serum biochemistry. Economic feasibility was evaluated for using GW in the diet. Results showed that there were no significant differences between groups in growth performance parameters between groups. Similar findings were recorded for digestibility of DM and nutrients. Addition of 10% and 20% of GW in the diets did not negatively affect blood picture or serum biochemistry and results showed no significant differences in carcass traits and meat analysis. Economical profitability was significantly found when feeding 20% GW in the diet. It can be concluded that GW can be utilized effectively at a level of 20% of the diet without adverse effect on performance, digestibility, carcass traits or health parameters of Ossimi lambs.