Fat supplements are well known for their multiple beneficial effects on ruminant health, reproduction and productivity, and as a source for certain bioactive compounds in ruminant products. On the other hand, numerous phytochemicals have demonstrated the potential to improve rumen fermentation through modifying the volatile fatty acid (VFA) pattern to favour those with greater energy efficiency, boosting microbial protein synthesis, and decreasing methane emission and ruminal ammonia concentration. Savory is an aromatic plant rich in various phytochemicals (mainly carvacrol and flavonoids) that can alter ruminal metabolism of dietary fatty acids, potentially increasing the production of some bioactive compounds such as conjugated linoleic acids (CLAs). This study aimed to investigate combined effects of oil type (fish oil (FO) versus soybean oil (SO)) and the inclusion of savory (Satureja khuzistanica) plant (SP) in the diet on total tract digestibility of nutrients, rumen fermentation, milk yield and milk fatty acid profile in dairy cattle. Eight multiparous lactating Holstein cows were used in a replicated 4 × 4 Latin square design experiment with four diets and four 21-d periods. During each experimental period consisted of 14 days of adaptation and a 7-day sampling period, cows were randomly assigned to one of the four dietary treatments: the diet supplemented with 2% (DM basis) fish oil (FOD) or soybean oil (SOD), the FOD or SOD plus 370 g DM/d/head SP (FODs, SODs, respectively). The experimental diets were arranged in a 2 × 2 factorial design, with the fat sources as the first and SP as the second factor. The FO-supplemented diets had lower dry matter intake (DMI) and higher total tract digestibility than SO-supplemented diets (P < 0.05), and including SP in the diet improved total tract digestibility of dry matter (DM), organic matter (OM), ether extract (EE), and non-fibrous carbohydrates (NFC) (P < 0.05) without negatively affecting DMI. Rumen pH was lower with SO than with FO diets (P < 0.01) and increased with SP inclusion in the diet (P < 0.05). Total protozoa count and ruminal ammonia concentration decreased, and the branched-chain VFA (BCVFA) proportion increased with SP inclusion in the diet (P < 0.05). Milk production, as well as the concentration and yield of milk components (except lactose concentration) were higher with SO than with FO diets (P < 0.05), but these variables remained unaffected by SP. The milk concentrations of both non-esterified fatty acids (NEFA) and beta-hydroxybutyrate (BHB) were lower with SO compared to FO diets, and these variables were reduced by SP (P < 0.01). The proportions of both mono- and polyunsaturated FA (MUFA and PUFA, respectively) in milk were higher with FO than with SO diets (P < 0.01), and their proportions increased by SP at the expense of saturated FA (SFA) (P < 0.01). Including SP in the diet increased the proportions of all the milk n-3 FA (C18:3c, C20:5, and C22:6) by 21%, 40%, and 97%, respectively, and those of conjugated linoleic acids (C18:2 (c9,t11-CLA) and C18:2 (t10,c12-CLA)) by 23% and 62%, respectively. There was no interaction between oil type and SP for the assessed variables. Fish oil, despite reducing milk production and milk components, was more effective than soybean oil in enriching milk with healthy FA. These findings also show promise for SP as a feed additive with the potential to improve total tract digestibility, rumen fermentation and milk FA composition.