The influence of grain type and fat source on the performance, coefficient of apparent ileal digestibility (CAID), and intestinal characteristics in broiler starters fed pelleted diets were studied. The experiment included 8 treatments arranged as a 2 × 4 factorial with 2 grains (wheat and corn) and 4 fat sources (soybean oil, fish oil, tallow, and palm oil). In all fat sources, corn-fed birds had a higher weight gain than those fed wheat-based diets. However, improvement in the weight gain of birds fed wheat-based diets supplemented with tallow resulted in a significant (P < 0.001) interaction between grain type and fat source. Inclusion of wheat and tallow increased feed intake compared to corn and other fat sources, respectively. Pellets made from wheat were harder (P < 0.01) than those based on corn. Broilers fed corn-based diets, had higher CAID of fat, Ca, and phosphorus (P < 0.01) than those fed wheat-based diets. Soybean oil inclusion, also increased (P < 0.01) fat digestibility compared to other fat sources. An interaction occurred between grain type and fat source where pellets made from corn and soybean oil had higher protein digestibility compared to the other treatments (P < 0.01). Feeding wheat-based diets increased pH of gizzard and proventriculus compared to corn-based diets (P < 0.01). Highest viscosity value was observed in wheat-diets supplemented with fish oil, and palm oil (P < 0.01). The pancrease, gizzard and cecum were heavier in corn-based fed birds compared to those fed wheat-based diets (P < 0.01). A significant interaction between grain type and fat source was noted for Lactobacillus spp. and the total anaerobic bacteria population in the cecum. Overall, the effect of grain type on weight gain, CIAD of protein and cecal microbiota differed depending on the fat sources. Feeding corn and soybean oil resulted in better gut development and growth performance in broilers fed pelleted diets.