The study showed that grazing of sheep on native pasture under coconut plantation resulted in decreased herbage yield and regrowth of grasses and legumes, and increase in the proportion of broadleaves and shrubs. In vitro dry matter digestibility (IVDMD) of samples from grazed pasture was significantly higher than ungrazed pasture in the middle of the study. However, there were no significant differences (P>0.05) in IVDMD of the experimental ration before and after the experiment. Sheep grazed under coconut plantation had significantly higher liveweight (P<0.05) than confined sheep from the second to the fourth month. Concentrate supplementation significantly improved liveweight (P<0.05) of ewes during the same period. At estrus, sheep grazed under coconut plantation resulted in heavier liveweight (P<0.05) than the confined animals. Concentrate supplementation significantly (P<0.01) resulted in higher conception rate, lambing rate, birth and weaning weights. Grazing sheep with or without concentrate supplementation under coconut plantation did not affect (P>0.05) the yield of nuts.