The hypothesis of this study was that arginine supplementation would overcome negative effects of restricted maternal feed intake during the last two-thirds of gestation on ewe performance and positively affect postnatal lamb growth and development. Multiparous, Rambouillet ewes (n = 32) were allocated to 3 treatments in a completely random design at 54 ± 3.9 d of gestation. Dietary treatments were 100% of nutrient requirements (control, CON), 60% of control (restricted, RES), or RES plus a rumen-protected arginine supplement dosed at 180 mg/kg BW once daily (RES-ARG). Ewes were penned individually in a temperature-controlled facility. At parturition, lambs were immediately removed from dams and reared independently. At day 54 ± 3 of age, lambs were stunned using captive bolt, exsanguinated, and organs were collected and weighed. Ewe BW from day 68 of gestation through parturition was greater (P ≤ 0.03) in CON compared with RES or RES-ARG. Similarly, ewe BCS from day 68 of gestation through parturition was greater (P ≤ 0.03) in CON than either RES or RES-ARG. Total ewe colostrum mass (g) at 3 h after parturition was greater (P ≤ 0.001) in CON than RES or RES-ARG. Lamb birth weight was greater (P = 0.04) in CON than RES ewes and tended (P = 0.10) to be greater in CON vs. RES-ARG. Lambs born to CON ewes had greater (P ≤ 0.03) BW than lambs from RES ewes at 7, 14, and 33 d postpartum. On day 19, lambs from CON and RES-ARG ewes both had greater (P ≤ 0.04) BW than lambs from RES ewes (12.0 and 11.5 vs. 10.3 ± 0.41 kg, respectively). Lambs born to CON and RES-ARG ewes had greater (P ≤ 0.04) ADG than lambs from RES ewes on day 19 (355.0 and 354.0 vs. 306.4 ± 15.77 g, respectively). Lambs from CON and RES-ARG ewes also had greater (P ≤ 0.02) girth circumference than lambs from RES ewes on day 19 (55.4 and 54.6 vs. 51.3 ± 0.97 cm, respectively). On day 54, lambs from RES-ARG ewes had greater (P = 0.003) curved crown rump length than lambs from RES ewes (99.8 vs. 93.9 ± 1.28 cm, respectively). Adrenal glands in lambs from CON dams had greater (P = 0.01) mass than adrenal glands in lambs from RES dams. Livers from lambs born to RES-ARG ewes weighed more (P = 0.05) than livers from lambs born to RES ewes. These results confirm our hypothesis that arginine supplementation during the last two-thirds of gestation can mitigate offspring, but not maternal negative consequences associated with restricted maternal nutrition.