1. This experiment was conducted to evaluate the effects of replacing dietary cottonseed meal (CSM) or fermented cottonseed meal (FCSM) for soya bean meal (SBM) on growth performance, carcass characteristics, gastrointestinal microbial populations, and intestinal morphology of broiler chickens. 2. CSM was fermented with Bacillus subtilis, Aspergillus niger and A. oryzae for 7 d. A total of 300 one-d-old male Ross 308 broiler chickens were used in a 42-d experiment in which the birds were randomly allotted to one of 5 dietary treatments (containing 0%, 10% and 20% CSM or FCSM) in a completely randomised design. Birds were reared on litter floor and had free access to feed and water during the experiment. 3. Results indicated that the fermentation process significantly reduced crude fibre and free gossypol, while it increased crude protein content and lactic acid bacteria (LAB) count in CSM. 4. The use of FCSM instead of CSM significantly improved growth performance of broilers. The abdominal fat yield in treatments containing FCSM was significantly lower than in the other treatments. The increase in the population of LAB in the crop and decrease in the population of coliforms in the ileum of birds fed on diets containing FCSM were more significant than in other birds. Villi in the duodenum and jejunum of the birds fed on diets containing FCSM were significantly higher than for the other experimental groups. 5. The positive effects of diets containing FCSM on growth performance and intestinal health of broiler chickens showed that this processed source of protein can serve as an appropriate alternative for SBM in diets for broiler chickens.