The objectives of this study were to investigate the effects of fish oil supplementation on performance and muscle fatty acid composition of hill lambs finished on grass-based or concentrate-based diets, and to examine the interaction with selenium (Se) status. In September 2006, 180 entire male lambs of mixed breeds were sourced from six hill farms after weaning and finished on five dietary treatments: grazed grass (GG), grass +0.4 kg/day cereal-based concentrate (GC), grass +0.4 kg/day cereal-based concentrate enriched with fish oil (GF), ad libitum cereal-based concentrate (HC) and ad libitum fish oil-enriched concentrate (HF). Within each treatment, half of the lambs were also supplemented with barium selenate by subcutaneous injection. At the start of the trial, the proportion of lambs with a marginal (<0.76 μmol/l) or deficient (<0.38 μmol/l) plasma Se status was 0.84 and 0.39, respectively. Compared with control lambs, GG lambs treated with Se had higher (P < 0.01) plasma Se levels, whereas erythrocyte glutathione peroxidase activity was higher (P < 0.01) for Se-supplemented lambs fed diets GG and GF. However, Se supplementation had no effects on any aspect of animal performance. Fish oil increased (P < 0.05) levels of 22:5n-3 and 22:6n-3 in the Longissimus dorsi of HF lambs but otherwise had no effect on the health attributes of lamb meat. There were no significant effects of fish oil on dry matter intake, animal performance or lamb carcass characteristics. Daily carcass weight gain (CWG; P < 0.001), carcass weight (P < 0.01) and conformation score (P < 0.01) increased with increasing concentrate inputs. Lambs fed concentrate-based diets achieved a higher mean CWG (P < 0.001), dressing proportion (P < 0.001) and carcass weight (P < 0.011), and were slaughtered up to 8.3 days earlier (P < 0.05) and at 1.2 kg lower (P < 0.05) live weight than pasture-fed lambs. However, carcasses from grass-fed lambs contained lower levels of perinephric and retroperitoneal fat (P < 0.05), and had less fat over the Iliocostalis thoracis (P < 0.001) and Obliquus internus abdominis (P < 0.05). Meat from grass-fed lambs also had lower levels of 18:2n-6 and total n-6 fatty acids compared with those finished indoors. The results of this study demonstrate that fish oil supplementation has some benefits for the health attributes of meat from lambs fed concentrate-based diets but not grass-based diets. Supplementing Se-deficient lambs with barium selenate will improve Se status of lambs fed zero-concentrate diets, but has no additional benefit when lambs are already consuming their daily Se requirement from concentrates or when fish oil-enriched diets are fed.