The objective of this research was to determine the influence of dietary palm oil supplementation on carcass characteristics and lipid composition of tissues from growing lambs. Twenty-eight Suffolk x Hampshire lambs were weaned at 60 d of age (average 36 kg BW) and assigned to a 2 x 2 factorial arrangement consisting of diet (control [NPO] or 10.6% added dietary palm oil [PO]) and sex (ram vs ewe). The NPO diet (77% forage and 23% concentrate) contained 11.2% CP and 2.66 Mcal of ME/kg. Palm oil replaced molasses in the PO diet. Lambs were individually given ad libitum access to feed for 60 d to a final BW average of 50.1 kg. Lipid composition of the longissimus muscle and corresponding subcutaneous (s.c.) adipose tissue was determined by gas-liquid chromatography (GLC). Lambs fed PO were fatter (P less than .01) than lambs fed NPO (.77 vs .56 cm, s.c. fat). Diet had no effect on cholesterol content of lean tissue; however, feeding PO increased the saturated fatty acids of lean tissue. The s.c. fat from lambs fed PO had less (P less than .01) cholesterol (64.79 vs 89.67 mg/100 g) and more saturated fatty acids than that from lambs fed NPO. Ewes were fatter (P less than .01) than rams, yet they had less cholesterol content in the s.c. adipose tissue (68.71 vs 85.74 mg/100 g). High amounts of dietary palm oil fed to growing lambs caused changes in fatty acid deposition and cholesterol metabolism and may be a useful investigative tool to study lipid metabolism in growing ruminants.(ABSTRACT TRUNCATED AT 250 WORDS)