A study was conducted for 120 days using 18 weaner ram lambs to study the effect of Azolla pinnata supplementation on carcass traits of lambs reared under grazing based production system in Mahbubnagar district of Telangana state. The study revealed that the carcass characteristics such as pre slaughter weight (PSW), empty live weight (ELW), hot carcass weight, total edible organs and total inedible organs were significantly higher in T3 group (20% azolla), followed by T2 (10% azolla) and T1 group (0% azolla). The dressing percentage on PSW was significantly higher in T3 lambs (47.24 percent) followed by T2 lambs (44.91 percent) and T1 lambs (40.75 percent). Carcass length was also found to be significantly (p<0.05) higher in T3 with 94.25 cm, followed by T2 with 94.15 cm and T1 with 94.00 cm. Loin eye area was found to be significantly (p<0.05) higher in T3 with 7.61 cm2 than T2 (7.59 cm2) and T1 (7.59 cm2). There was no significant difference in percentage carcass weight of wholesale cuts except neck and shoulder, which was significantly higher in T1 group followed by T3 and T2 group. The percent yield of meat, bone and fat were non-significantly different between the groups.