The aim of this study was to evaluate the nutritionaland feeding value of peanut hay (Arachis hypogaeaL.) produced under tropical environment as an alternateforage resource for sheep. Peanut hay was appreciably highin crude protein [CP; 105 g/kg dry matter (DM)] and lowerin neutral detergent fiber (NDF; 466 g/kg DM). Moreover,peanut hay was rich in Ca (12 g/kg DM) and P (1.7 g/kgDM). A feeding trial was conducted to investigate the effectof substituting wheat straw with peanut hay on nutrientintake, digestibility, and N utilization. Four adult Ramghani(Kaghani ÃƒÂ— Rambouillet) wethers (60Ã‚±2.5 kg body weight)were randomly assigned to the four dietary treatmentsaccording to a 4ÃƒÂ—4 Latin square design. The four rationswere formulated on isonitrogenous and isocaloric bases anddiffered in the proportion (in grams per kilogram DM) ofwheat straw/peanut hay, i.e., 700:0, 460:240, 240:460, and0:700. The replacement of wheat straw with peanut hayincreased the intakes of DM (P<0.001), NDF (P<0.01),and N (P<0.001). Moreover, apparent in vivo digestibilityof DM, NDF, and CP increased (P<0.001) with the increasingproportion of peanut hay in the ration. Nitrogen retentionin the body increased (P<0.01; 3.2 to 8.1 g/day) withthe replacement of wheat straw with peanut hay. Thesefindings showed that substitution of wheat straw with peanut hay can improve DM and nutrients intake, digestibility,and N retention in sheep.