Merino sheep infested with lice (Bovicola ovis) and with 8 months’ wool were hand jetted with a commercial spinosad formulation or treated with an α-cypermethrin backline product to examine the effect of long wool treatment on lice numbers and wool damage, relative to untreated controls. Mean lice numbers were reduced significantly (P < 0.05) by treatment and then remained relatively constant until shearing 20 weeks later. Treatment with either product resulted in significant improvements in mean clean and greasy wool cut, yield, staple length, both visually assessed and measured colour, and the proportion of fleeces classed into the main fleece line. There was no significant difference between the two treatments in either efficacy in reducing louse numbers or on production characters. Wool rub score and cotting assessed on the sheep increased slightly after treatment and then did not change until shearing whereas both scores increased significantly in the untreated group. There was a strong relationship between the visual rub score and the loss of wool at shearing, indicating that rub score can be a good predictor of lice-induced reduction in fleece weights.