Abstract: Background and Objective: Saudi Arabia is one of the major date producing countries in the world. Consequently, huge quantity of date palm leaves are removed annually as agricultural waste and is a potential source of environmental problems due to its improper disposal. The aim of this study was to evaluate the effect of feeding Urea Treated Palm Leaves (UTPL) by substituting the regular feed on milk production, milk composition and animal performance. Materials and Methods: This study was conducted at Agricultural Research and Training Station, King Faisal University, Al-Ahsa, Saudi Arabia. Twenty Ardi goats in their 2nd and 3rd lactation stages were selected and randomly allotted to one of the four diets with five replicates. A total of four diet treatments were studied. Data were analyzed using SPSS package (SPSS 14.0 SPSS Inc. Inc., Chicago, IL, USA). Results: Dry matter intake of goats fed with 10 UTPL was significantly (p<0.05) low than the control and other diets. Milk Yield (MY) was significantly low for the control group than the other groups. Fat (%) of milk was significantly higher in goats fed with 20 and 30 UTPL diets than other groups. Milk protein percentage was significantly high in goats fed with 20 UTPL diet than the control and other diets. Goats fed with 30 and 10 UTPL diets contained significantly more lactose (%) than those fed with the control and 20 UTPL diets. The DM and OM digestibility of goats fed with 10 UTPL diet was significantly low compared to other diets. The CP digestibility was significantly (p<0.05) higher of goats fed with 20 and 30 UTPL diets than the control and 10 UTPL. Goats fed with control and 30 UTPL diet showed significantly (p<0.05) higher NDF, ADF digestibility and DCP than those fed with 20 and 10 UTPL diets. Goats fed with control, 20 and 30 UTPL diets were significantly (p<0.05) higher in NFE digestibility than those fed with 10 UTPL diet. Goats fed with 10 UTPL diet was significantly low in TDN than other dietary treatments. Conclusion: Urea treated palm leaves can be replaced up to 30% of alfalfa hay without affecting the animal health, milk composition, crude protein digestibility and overall performance.