ABSTRACT Forage-based diets are encouraged in organic dairy cattle production as this can increase the net human food supply, but their voluminous nature can limit dry matter intake (DMI) and performance. This study investigates the effects of a substantial particle size reduction of hay on dairy cows’ feed intake, performance, and body characteristics, as well as on apparent total tract digestibility (ATTD). Eighteen lactating Holstein cows were allocated to two balanced feeding groups. The control group received long stem hay with a conventional particle size (CON), the experimental group received chopped hay (RED). Both groups were supplemented with concentrates (3.6 kg/d, DM basis). After 14 adaptation days, data were collected for 20 consecutive days. A covariate period of 21 days preceded the experimental feeding period. Particles retained on the 19-, 8- and 4-mm screens and on the pan of the Penn State Particle Separator accounted for 21%, 20%, 20% and 39% of the RED hay. CON hay consisted of 72% large particles, followed by 8%, 7% and 13% retained on the other screens. Average DMI levels of cows in the CON group reached 20.8 kg/d, with a nonsignificant increase (+1.05 kg/d) in the RED group (p = 0.28). Intakes of both NFC (+0.65 kg/d, p = 0.01) and CP (+0.28 kg/d, p = 0.05) were significantly greater in the RED group, resulting in a slightly increased milk yield (+0.8 kg energy corrected milk/d) (p = 0.45), likely because the ATTD decreased significantly when feeding RED hay. No impact was observed on energy balance (103.7 vs 103.9%, p = 0.95), feed conversion efficiency (kg ECM/kg DMI), or N use efficiency. Overall, the results indicate increases in intake of NFC and CP in the RED group when feeding a hay-based (>83%, DM basis) diet, but also a decrease in nutrient digestibility, likely due to increased passage rate, potentially because of the high fraction of hay particles < 4 mm. In conclusion, hay-based rations with a lower proportion of fine particles should be tested to exploit the potential of particle size reduction in terms of improving hay use efficiency.