Crossbred sheep (n 16,8·5 months of age and 33 (SE 0·9) kg) were used in a 21 d experiment (2x2 factorial) to determine effects on net flux of nutrients across the portal-drained viscera (PDV) and liver of ad libitum consumption of bermudagrass (Cynodon dactylon; B) v. ryegrass (Lolium multiflorum)-wheat (Triticum aestivum; RW) hay, coarsely chopped (CC) or finely ground and pelleted (GP). Crude protein concentrations were 86, 81, 113 and 119g/kg and neutral-detergent fibre concentrations were 710, 688, 654 and 672 g/kg (dry matter basis) for B-CC, B-GP, RW-CC and RW-GP respectively. Digestible energy intake (6.0,9.6·, 10·2 and 13·8 W/d) Mered (P < 0·01) with grass source and form, and digestible N intake values were 4·4, 7·0, 8·4 and 14.1 (SEM 0·82) g/d for B-CC, B-GP, RW-CC and RW-GP diets respectively. Consumption of O2 by the PDV (118,165,144 and 155mmol/h) and splanchnic bed (196,273,247 and 266 mmollh for B-CC, B-GP, RW-CC and RW-GP respectively) was greater (P=O·O7) for GP than for CC. The ratio splanchnic heat energy production: digestible energy intake was greater (P=0·06) for B than for RW (0·374,0·300,0·278 and 0·219 for B.CC, B-GP, RW-CC and RW-GP respectively). α-Amino-N release by the PDV (P< 0·01; 11·6, 12·8, 23·0 and 18·7 mmoyh) and uptake by the liver (P=0·07; 15·2, 6·1, 17·0 and 19·3 mmol/h for B-CC, B-GP, RW-CC and RW-GP respectively) were greater for RW than for B. Release of NH3-N by the PDV was greater (P=O·02) for CC than for GP (12·5, 6·2, 15·7 and 8·9 mmol/h), and hepatic urea-N release differed between grass sources (P=O·O3) and physical forms (P=0·07; 22·6, 12·7, 31·4 and mmol/h for B-CC, B-GP, RW-CC and RW-GP respectively). In conclusion, decreases in forage particle size elicited by grinding and pelleting did not affect the difference between grass sources in splanchnic tissue heat energy production relative to digestible energy intake.