Pasteurization of vegetable by-products such as potato slurry (PS) before feeding may be necessary to prevent the spread of pathogens and beef carcass blemishes. We hypothesized that pasteurization would increase ruminal fermentability of PS starch. Four ruminally cannulated crossbred beef steers (initial BW = 432) were used in a 4 x 4 Latin square experiment with a 2 x 2 factorial arrangement of treatments to examine the main effects and interactions of pasteurization (54.4 degrees C for 2 h) of PS and grain type (GT; dry-rolled corn and barley) on ruminal and total tract digestion of beef finishing diets. Diets contained 7% alfalfa hay and 14% PS (DM basis) and were fed ad libitum three times daily. Corn-based diets had 71.7% corn, whereas barley-based diets had 60% barley and 11.7% corn. Pasteurization resulted in greater (P = 0.004) soluble, rapidly degradable starch (34.3 vs. 26.7% for pasteurized and nonpasteurized PS, respectively). Ruminal fluid pH was more acidic (P < 0.07) for corn-based diets than for barley-based diets (P = 0.07) at 0200 and 2100 (sample time x GT; P < 0.05). Ruminal fluid pH was more acidic (P = 0.06) at 1400 for corn-based diets containing pasteurized PS compared with other dietary treatments (sample time x pasteurization x GT; P = 0.04). Minimum and maximum ruminal pH were greater (P < 0.10) for barley-based diets than for corn-based diets. Ruminal fluid pH was < 6.0 for a greater (P = 0.04) proportion of the day for corn-based compared with barley-based diets. In vitro incubation measurements revealed that pasteurization of PS resulted in lower (P = 0.06) ruminal fluid ammonia N concentration. Ruminal fluid ammonia N concentration was lower (P = 0.11) for barley-based diets than for corn-based diets. Steers fed barley-based diets had greater (P = 0.02) DMI and lesser (P < 0.05) total tract digestibility of DM and ADF compared with steers fed corn diets. Pasteurization increased (P = 0.10) total tract starch digestibility. Results indicate pasteurization increased rapidly degradable starch, ruminal starch fermentability, and total tract starch digestibility of PS. Grain type interacted with pasteurization such that feeding corn-based diets containing pasteurized PS resulted in periodic reductions in ruminal pH. Feeding management may be more critical when feeding pasteurized PS in beef finishing diets.