Abstract The objectives were to compare cereal grain and straw yield between barley and hybrid rye (HR) and to evaluate whether the inclusion of dry-rolled HR grain as a replacement for barley grain affected feed intake and growth for growing cattle, and feed intake, growth, and carcass characteristics for finishing cattle. Crop yield was measured by directly weighing harvested grain and straw bales (n = 3 plots/grain type). Three-hundred sixty steers with an initial body weight (BW) of 348 ± 40 kg were stratified by BW and randomly assigned to 1 of the 24 pens during the growing phase (n = 8; 65 d). The control diet (BCON) included 60.22% barley grain with HR included by replacing 50 (BMID) or 100% (BHIGH) of the barley grain on a dry matter (DM) basis. Steers were re-randomized for the finishing phase (n = 6; 118 d) and treatments included a control diet containing 88.60% barley grain (FCON) with HR replacing 33 (FLOW), 67 (FMED), or 100% (FHIGH) of the barley grain (DM basis). The grain yield was greater (P = 0.04) and straw yield tended (P = 0.06) to be less for HR than barley. There were no effects of HR inclusion on DM intake (DMI) or G:F during the growing phase, but average daily gain (ADG) responded quadratically (P = 0.02) with cattle fed 50% HR having the greatest gain. During finishing, DMI decreased linearly as HR grain inclusion increased (P < 0.01). ADG initially increased from FCON to FLOW followed by a decrease with increasing HR inclusion (quadratic, P < 0.01), but G:F was not affected. Hot carcass weight was greatest for FCON with the magnitude of difference between FCON and the HR treatments increasing with increasing inclusion of HR (quadratic, P = 0.02). There was a linear increase in dressing percentage (P = 0.02) and a linear reduction in back fat thickness (P = 0.04) with increasing inclusion of HR. Increasing the inclusion of HR during finishing cubically (P < 0.01) affected the proportion of minor and severe liver abscesses with an average of 34.60% severely abscessed livers when HR was included compared to 11.11% for BCON. HR may have greater grain yield than barley, and partial replacement of barley grain with HR may improve ADG without affecting DMI or G:F during the growing phase. However, replacing barley grain in finishing diets with HR decreases DMI, and increases the risk of minor and severe liver abscesses, but does not affect feed conversion, suggesting HR should not replace more than 33% of the barley grain to maintain ADG.