A Survey was conducted selecting one kebelle per study sites purposively and thirty representative household heads from each kebelle to collect primary data on sheep production systems. Two phase fattening trials were conducted in three sites of Enebsie Sar Midir Woreda to evaluate the performance and economic analysis oflocal sheep kept under framer's condition. Forty eight intact sheep with average initial weight of23.14:1:3. 8 kg (mean :1:SD) and 24.95:1: 5 kg in the first and second trials were selected respectively. The treatments included supplementation with 360 g grass pea residue plus 180 g wheat bran (WE) (T2), or 260 g (TJ) or 240 g (T4) mixtures of WE and noug seedcake (NSC) on dry matter bases at the ratio of 2. 3: 1 and 1.47: 1. RCBD in a factorial arrangement was used assigning treatments randomly based on initial weight for the first trial but similar treatments per two sheep per farmer fed without randomization in the second trial. Statistical analysis was made taking initial weight (Wo) as covariate and Ducan 's multiple range test for the mean separation of the body weight change in the eighty four days of experimental period. The survey result indicated that almost all framers are involved in mixed farming system. The major constraints in livestock production are feed shortage. disease and unavailability of capital. Experiment one showed that final body weight of supplemented sheep was significantly higher (P<O. 0 I) than the control group. The supplemented groups grew 19 % (26 glday) and 15 % ( 22glday) faster than their unsupplemented counterparts and within supplemented groups. respectively. Positive Marginal Rate of Return (MRR) was obtained from 73 . Experiment two, live weight of lambs in T4, 73 and T2 were significantly higher (P <0.(1) than those in T, Moreover. T3 and T4 were significantly higher (P<0.01) than T2. Sheep in T2 weighed 7% more than TJ but about 8% lower than T.J and TJ. A positive MRR of 2-1 % to 77 % was obtained in supplemented groups than those in TJ. Sheep best performed when supplemented with more concentrates on T, and TJ However, in areas like the study site where concentrates are not easily available. utilization of legume crop residues at the rare oj360g plus 180 g WB (7]) could still be more profitable than grazing alone. Thus. it can be concluded that the supplementation of T, and T2 could be used as the optimal level of supplementation jar weight gain and return.