In the first of two experiments, four wether lambs (BW = 26.8 kg) and four wether Angora goats (BW = 31.7 kg) were used in two simultaneous 4 x 4 Latin squares to study the influence of condensed tannins (CT) on nutrient usage and concentrations of serum urea N, somatotropin (GH), and insulin (INS) when the animals were fed low-quality diets containing mountain mahogany (MM; Cercocarpus montanus) leaves. Diets were 8% CP and contained 25% or 50% MM (with hay or straw, respectively), either untreated or treated with polyethylene glycol (PEG; molecular weight 3,350) to reduce total reactive CT. Diets treated with PEG and 25% MM diets had less (P less than .05) CT than diets without PEG or those with 50% MM. Diets containing 50% MM resulted in greater N balance and lower serum urea N (P less than .01) than 25% MM diets. Concentrations of GH and INS were similar in animals fed the 25% and 50% MM diets. Reducing CT by adding PEG did not affect N balance or improve nutrient digestion by lambs or goats fed low-quality diets. In Exp. 2, four wether lambs (BW = 28.4 kg) were used in a 4 x 4 Latin square and fed the same diets as animals in Exp. 1 to study the influence of CT on ruminal fermentation and digesta kinetics. Dietary PEG treatment did not affect digesta kinetics except for a 30% increase in ruminal volume; 50% MM diets had faster particulate passage rates (P less than .05) than 25% MM diets. Ruminal ammonia N was greater (P less than .01) in lambs fed PEG-containing or 25% MM diets; however, rate of in situ NDF disappearance was not reduced by the lower ammonia N in the latter diets.