This study determined the effect of replacing ground corn and soybean meal with ground Pouteria sapota kernel (PSSM) in lamb diets on nutrient intake and digestibility, performance, and carcass traits. Twenty-one male hair sheep lambs with an average body weight of 22 ± 3.5 kg were randomly assigned to three treatment diets containing PSSM at 0, 10, and 20% of the total dry matter (DM) inclusion. The study lasted 60 days, which included 15 days for adaption and 45 days for sample collection. The PSSM inclusion did not affect intake or performance (p > 0.05). However, ether extract (EE) digestibility linearly increased (p < 0.0001), while crude protein (CP) and acid detergent fiber (ADF) linearly decreased. Final body weight, total weight gain, average daily weight gain, feeding efficiency, and carcass traits were not affected by PSSM inclusion. In conclusion, these results suggest that PSSM can replace up to 200 g/kg DM of ground corn and soybean meal without affecting intake or animal performance.