ABSTRACT Research attention is currently being directed towards the use of herbs and spices as alternative feed additives which are known to have growth promoting, antioxidative and antimicrobial effects as well as stimulating feed intake and improving serum and tissue lipid profile. This research was carried out to investigate the effect of red pepper (Capsicum annuum L) as feed additive on performance, apparent nutrient retention, carcass characteristics and haematological and serum parameters of Broiler Chickens. A total of one hundred unsexed one-day old chicks were purchased from a Commercial Hatchery and brought to the Poultry Experimental Unit of the University of Benin Farm Project, Ugbowo Campus, and were completely randomized into five Experimental dietary groups with each replicated 3 times. Each replicate contained 7 birds and were fed in two phases viz: starter (0-4 weeks) and finisher (5-8 weeks). Diets respectively contained 0, 0.25%, 0.50%, 0.75% and 1% of dry pepper. Results obtained showed body weight gain (BWG) were significantly (P<0.05) different at the starter phase but was not significantly (P >0.05) affected at the finisher phase. The least body weight gain was found among birds at 0.5% level of red pepper addition. Total feed intake, feed conversion ratio, total water intake and mortality percent were not significantly (P>0.05) different at both phases. The results obtained for haematological indices showed significant (P<0.05) differences only in the MCH (%) mean values at the finisher phase with 0.25% inclusion rate showing the highest level. There was significant (P<0.05) differences in the albumen mean values also at the finisher phase with 1% level of inclusion showing highest concentration level. The concentration of triglyceride, cholesterol and glucose were numerically lower for birds fed 0.75%, 0.5% and 0.75% respectively. Carcass evaluation showed significant (P<0.05) differences in some commercial cuts such as thigh, wing and drum stick. Thigh yielded better weight at 1% inclusion, while the wings at 0.5%, 0.75% and 1% yielded similar weights. The drumstick yielded highest weight at 0.75% inclusion rate. Balance study was significant (P<0.05) only in Ether extract retention. Diets 1 and 2 were similar, but significantly (P<0.05) different from Diet 5. It was concluded that red pepper had positive effects in enhancing productive performance as well as improving lipid profile of birds as observed in this experimental trial.