ABSTRACT 1. The aim of this study was to evaluate the effect of graded levels of the microbially derived feed lysozyme, muramidase (MUR) on feed intake (FI), weight gain (WG), feed conversion ratio (FCR), European Performance Index (EPI), dietary N-corrected apparent metabolisable energy (AMEn), footpad dermatitis score (FPD) and other welfare variables, when fed to broilers from 0 to 42d age. 2. A four-phase dietary programme and four experimental pelleted diets were used; a control diet (following breeder recommendations without MUR supplementation), and three diets based on the control diet supplemented with 25,000, 35,000 and 45,000 LSU (F)/kg of MUR, respectively. In addition, all experimental diets contained exogenous xylanase, phytase and a coccidiostat. Each diet was fed to birds in 24 pens (20 male Ross 308 chicks in each pen) following randomisation. Dietary AMEn was determined at 21 d of age, and FPD was evaluated at the end of the study. Data were analysed by ANOVA, using orthogonal polynomials for assessing linear and quadratic responses to MUR activity. 3. The inclusion of MUR did not change FI (P > 0.05), but increased WG in a linear manner (P < 0.05) and reduced FCR in a quadratic manner, with optimum WG and FCR observed in birds fed approximately 35 000 LSU (F)/kg. In accordance with the improvement in FCR, 35 000 LSU (F)/kg MUR supplementation produced the highest EPI (P < 0.05). FPD score was linearly decreased with increased addition of MUR (P < 0.05). Dietary AMEn responded in a quadratic fashion to the MUR inclusion, as the highest values were obtained with the highest inclusion rate (P < 0.05). 4. In conclusion, the results showed that inclusion of MUR improved feed efficiency and the foot health of birds.