Thirty-three lambs (25.2 ± 2.7 kg BW) were used to study if mechanical treatment of canola seeds can exert an effect on carcass quality, blood lipids, and fatty acid profile of depot fat. All lambs received a basal diet of 179 g d−1 of a 16% CP commercial concentrate and grass silage fed ad libitum. The basal diet was supplemented with the following dietary treatments (dry matter basis): C, a control supplement supplying 182 g of a mixture of 66% canola meal and 34% canola oil; WCS, 187 g of whole canola seeds; RCS, 188 g of rolled canola seeds; and GCS, 189 g of ground canola seeds. Dressing percentage was higher (P < 0.05) for diet C (45.6%) than for WCS (42.5%) and RCS (41.9%). The highest and lowest carcass grades were obtained with diets C and RCS, respectively (P < 0.05). Blood lipid concentrations increased as the lambs grew older (P < 0.01). Lambs fed the GCS diet had lower plasma concentrations of total cholesterol and high density lipoprotein cholesterol than lambs fed the WCS or RCS diets (P < 0.05). Kidney fat of lambs on the C diet contained more trans -C18:1 and less C18:0 compared with the other diets (P < 0.01). The utilization of untreated or rolled canola seeds as protein and fat supplements decreased carcass quality, increased blood triglycerides and changed fatty acid composition of depot fat. Key words: Canola seeds, lambs, carcass composition, blood lipid