Sorghum grain was included in a basal diet of molasses (molasses 505, urea 21, sunflower meal 191, pangola grass hay 250, minerals 31 g/kg as fed) at rates of 0, 202, 391 and 707 g/kg, generating diets in which grain replaced 0 (diet A), 33 (diet B), 66 (diet C) and 100% (diet D) of the molasses and hay. The four diets were fed to groups of four Hereford steers (293–334 kg liveweight) over a 96-day period. One half of each treatment group was implanted with a growth promotant (zeranol), and all were slaughtered at a commercial abattoir at the end of the trial. The inclusion of 33% grain increased voluntary feed consumption, digestible dry matter (DM) intake (from 57·6 to 82·0 g digestible DM/kg0·75 per day and significantly increased liveweight gain from 592 to 900 g/day. Zeranol implantation also increased liveweight gain but not feed intake. Steers given only grain (diet D) had the highest liveweight gains (1127 g/day). The addition of grain to molasses diets decreased urinary N excretion and increased ammonia and volatile fatty acid (VFA) concentrations in rumen fluid. Molar proportions of propionic acid in total VFA increased from 0·15 to 0·20, and butyric acid decreased from 0·36 to 0·29 when 33% of the molasses was replaced by sorghum grain. The fat content (depth at sacral position) of the carcasses of steers given grain only (diet D) was significantly greater (14 mm) than that of steers given the basal diet of molasses (4 mm), and carcass fat contents were intermediate (10 and 11 mm) for steers given diets B and C respectively. It was concluded that the inclusion of small amounts of grain in molasses-based diets increased cattle growth principally by increasing digestible energy intake without decreasing molasses intake, thus improving the efficiency of utilization of molasses in molasses-based diets.