Adequate ambient temperature and oxygenation are necessary to maintain normal embryonic development of broilers; however, hypoxia challenge during incubation can aid in improving regulatory plasticity and lead to different phenotypes later in life. This study aimed to examine the effects of moderate hypoxia (O2 17%) during the plateau phase on the embryonic physiological parameters and on posthatch performance (growth rate, feed consumption and feed conversion) up to the age of poultry marketing. The study included examined embryos exposed to O2 17% for 12 h per day (h/d) from E16 through E18 (designated as 12H), or O2 17% continuously, from E16 through E17 (designated as 48H) and a standard incubation control group (21% O2). Physiological and morphological parameters of embryos and hatched chicks were measured. Male Chicks from all 3 treatment groups were raised under recommended temperature regime, and body weight, feed intake and FCR were recorded on a weekly basis. The intermittent hypoxia protocol (12H), allowed embryos to properly adapt to the shortage of oxygen, compensate for the gap in body mass that developed following the first exposure window, and hatch with characteristics similar to those of the control embryos. In contrast, while the 48H embryos were able to adapt to the hypoxic stress, the prolonged exposure prevented them from catching up with both control and 12H embryos. Broilers that were subjected to hypoxia showed hatchling body weights and growth rates similar to those of controls, throughout the entire growth phase. During the fifth wk, lower feed consumption was observed in the 12H and 48H groups and became significantly lower than the control chicks in the sixth wk of growth. Following hypoxia exposure, chicks managed to reach normal body weight with less feed, with the 12H group demonstrating lower and more efficient FCR during the last 2 wk of growth.Broiler embryos reacted to plateau-phase hypoxia challenge with numerous physiological and metabolic modifications. The prudent alterations in metabolism and cardiovascular system during exposure to hypoxia and posthatch, resulted in more efficient energy utilization in broilers, which may have a long-lasting enhancing effect on posthatching thermotolerance and sustainability in chicks reared under sub-optimal environmental conditions.