Artificial rearing is a common practice for rearing calves from the dairy herd destined for beef production. Calves fed increased amounts of milk replacer in early life have higher live weight gains than those on lower levels of milk and are subsequently heavier at weaning. After a period of nutritional restriction beef animals can exhibit compensatory growth. However it has been suggested that growth restriction in early life can result in reduced levels of compensation (Ryan, 1990). The objective of this study was to determine the effect of increasing the daily allowance of milk replacer offered on a restricted basis to Continental x Holstein beef calves during the first 6 weeks on compensatory growth from weaning to 11 weeks.