Postweaning growth and carcass characters of 110 steers from a complete two-breed diallel of the Devon and Hereford breeds were examined under two environments. Additive and nonadditive effects were estimated using linear contrasts for several growth and carcass traits. Steers from each of the four breed groups were grown postweaning to slaughter in high- and low-nutrition environments. Weights were recorded every 2 mo. At slaughter, hot carcass weight, longissimus muscle area, kidney and channel fat, and subcutaneous fat at nine sites were measured. Heterosis for postweaning growth rate was 3.9% (P less than .01) and for slaughter weight 5.0% (P less than .01). Within the low-nutrition environment during periods of slow and fast growth, the Devons and Herefords performed differently. The growth rate of the steers differed in the two environments; however, heterosis for slaughter weight was of the same magnitude in both environments. No differences existed between the straightbreds or between the reciprocal crosses for slaughter weight. Crossbred carcasses were 7.4% heavier (P less than .01) than the straightbred carcasses; however, this effect was removed after adjustment for differences in slaughter weight. Heterosis for longissimus muscle area and carcass fatness were not significant after adjusting for carcass weight. Additive differences occurred for carcass traits. Devon carcasses had more kidney and channel fat (P less than .05) at a constant hot carcass weight and differences occurred in the partitioning of fat within the subcutaneous depot. No significant maternal effects were observed for the carcass traits measured. Crossbreeding increased carcass weight without altering composition, and relative performance was not affected by the diverse environments.