With a growing export and local market, sheep farming is critical to the economy of smallholder farmers; however, indigenous sheep breeds usually exhibit low carcass output and live weight due to nutritional constraints. The study aimed to investigate the impact of supplementing local sheep with dawri-damaa leaf meal (DDLM) on their performance, carcass characteristics, and profitability when fed native grass hay. The research used a randomized complete block design (RCBD) to administer four feeding treatments (T1, T2, T3, and T4 at 0%, 30%, 50%, and 70% DDLM, respectively) to 20 local uncastrated male lambs having an average 23.72 ± 0.73 kg body weight and average age of 11.72 ± 0.74 months. Greater doses of DDLM in the diet resulted in greater average daily gain (ADG) of 51.4-83.8 g/day and feed conversion efficiency (FCE) of 0.066-0.089 in lambs, compared to 15.0 g/day ADG and 0.025 FCE in lambs under control diet (T1). Additionally, the lambs had increased slaughter body weight (SBW), empty body weight (EBW), and hot carcass weight (HCW) in T4 and T3 compared to other treatments (p < .05). There were no significant differences in dressing percentages (DPs) across any treatment group. The study also discussed the economic viability of supplementing with DDLM, suggesting that feeding 70% daily dry matter of DDLM at 2.5% live weight might be beneficial depending on availability, access, and cost factors. In conclusion, feeding DDLM up to 70% has improved the performance of sheep and is economically feasible. Further research might be required to discover whether such levels of inclusion are harmful and apply different processing methods for feeding animals.