An experiment was conducted in a 4 x 4 LSD trial using adult Labrador dogs (live weight 18.25 ± 0.25 kg, 380.75 ± 2.81 days of age) to find out the effect of incorporation of different levels of poultry slaughter waste (PSW) in dog diets on dry matter (DM) intake, palatability and digestibility of nutrients. The treatment diets were No PSW (CON; n = 6); 5% PSW (PSW5; n =6); 10% PSW (PSW10; n =6) and 15% PSW (PSW15; n =6). The test diets were prepared by extrusion cooking process and fed in the form of differently shaped dry extruded type dog biscuits. The experiment lasted for 60 days. DM intake, DM intake as % body weight (Pel in dog diet biscuits prepared by extrusion cooking had positive impact on digestibility of nutrients. The cost incurred on test diet PSW15 was 11% lesser when compared to CON diet. It is concluded that, inclusion of PSW in the extruded dog diets improved palatability, DM intake and nutrient utilization and PSW could be incorporated in the adult dog diets at 15% level without any adverse effect on health of the animal while being cost effective.