Optimising animal performance from pasture requires a high intake of highly digestible grass. In vivo dry matter digestibility (IVDMD) of grass is affected by the level of dry matter intake (DMI). The objective of this experiment was to analyze the effect of dry matter (DM) content of grass on IVDMD at 2 feeding levels in wether sheep. A Latin square design, with 4 periods and 4 treatments, was used. There were 4 sheep per treatment per period (n = 16) with 4 treatments in a 2 × 2 factorial grass type; wilted or fresh grass offered at one of 2 feeding levels; ad libitum or maintenance. Each 12-d period consisted of a 6 d adaptation phase and a 6 d measurement phase (MP). Grass was cut daily each morning. Approximately half the grass was artificially wilted for 5 h using a centrifugal fan at 18°C (wilted). The other half of the grass was stored at 4°C (fresh). The fresh and wilted grass was fed to the sheep daily at 4 p.m. The DM content of the wilted and fresh grass was 27.8% and 18.6%, respectively. Ad libitum sheep were offered 110% of the previous day’s DMI. Maintenance fed sheep were fed 40 g grass DM/kg metabolic BW. Sheep were housed in stalls to allow for individual feeding and total fecal collection. During the MP in each period, a sample of the grass fed to and feces voided by each sheep was collected daily. The daily grass and feces samples were dried and bulked to give one sample per treatment and per sheep per period. Data were analyzed using a mixed model procedure in SAS. Period, feeding level, grass type and their interactions were fixed effects and sheep was a random effect. Wilted grass (757 g/kg) had greater IVDMD than fresh grass (746 g/kg; P < 0.01) and maintenance level feeding (759 g/kg) resulted in greater IVDMD than ad libitum (744 g/kg; P < 0.001). When fed ad libitum, wilted grass (1.50 kg DM/day) resulted in greater DMI than fresh grass (1.40 kg DM/day; P < 0.05) but fresh grass had greater fresh weight intake than wilted grass (P < 0.001). This indicates that reducing perennial ryegrass moisture content results in increased IVDMD and increased DMI in sheep fed indoors.