A feeding trial was conducted to evaluate the effect of inclusion of different levels of shrimp meal with fish meal on growth, feed utilization, water quality and cost implication of the diet O. niloticus fingerlings. A total of two hundred and four (204) fish with an initial weight of 2.93+ 0.55g were stocked in twelve (12) tanks of dimension 1.8 x 1.3 x 0.36m3 for 12 weeks. Four diets (D1, D2, D3 and D4) contained 100% SM, 70% SM and 30% FM, 50% SM and 50% FM, 30% SM and 70% FM respectively, were fed twice daily to satiation. Final weight gain was 4.65±1.72g, 3.89±0.96g, 3.58±0.65g, 3.73±0.80g for the treatments respectively. The highest mean weight gain (4.98±0.31g) and specific (4.57±0.69%) growth rates were in fish fed with 100% SM (D1) and lowest (3.59±0.15g, 17.7±0.17% respectively) in fish fed 50% SM and 50% FM (D3). Protein efficiency ratio was highest in D1 and lowest in D4. Feed conversion ratio was lowest in diet D1 and highest in D4. Survival rate was good in all the treatments having the highest in D2 and lowest in D1. Diet 1 had the best growth followed by D2, D4 and D3 respectively. Cost implication and water quality parameters showed no significant differences (p>0.05) among the diets. Results showed that SM could replace FM by 100% without having any negative effect on the growth and tend to be uneconomically efficient at such inclusion level.