Lactating dairy cows were offered diets containing increasing quantities of Tifton 85 bermudagrass hay or silage and increasing dietary neutral detergent fiber (NDF) to determine effects of method of bermudagrass storage and dietary fiber content on intake, milk yield, and nutrient digestion. Bermudagrass was added as hay or silage at the rate of 8.5, 15.9, or 23.3% of dietary dry matter and was substituted for an equal quantity of corn silage. The method of bermudagrass storage did not affect intake [20.8 vs. 20.3 (+/- 0.3) kg/d for bermudagrass hay and silage diets; respectively], but an increase in the amount of bermudagrass and NDF in the diet did reduce intake. Dietary NDF concentration was well above minimum recommendations of the National Research Council. Milk yield was not altered by method of bermudagrass storage but declined as dietary NDF increased. Digestion of NDF tended to be lower for bermudagrass silage than for bermudagrass hay. An increase in the amount of bermudagrass in the diet improved digestion of dietary dry matter, acid detergent fiber, and NDF; however, milk yield declined because total intake declined. Improved NDF digestion caused by added bermudagrass hay or silage was confirmed by in vitro analyses. High quality bermudagrass hybrids could potentially be used in diets of lactating dairy cows because of the good digestion characteristics and relatively small effects on intake despite the high dietary fiber content. Tifton 85 bermudagrass may serve as a forage alternative for lactating dairy cows.