The effects of graded atmospheric O-2 concentration (12,14,16,18, and 20.6%) on chick performance and propensity to develop ascites were investigated using commercial male broilers. Chicks were housed in calorimetry chambers for 2 wk with incoming air diluted with N to provide the desired O-2 concentration at thermoneutral (TN) ambient temperature. Day 14 body weight, weight gain, feed consumption, and gain-to-feed ratio increased (P < 0.01) as O-2 concentration incrementally rose from 12 to 20.6%. Body weight was 138 g for the lowest atmospheric O-2 level compared to 371 g for 20.6% O-2. The greatest treatment difference occurred between the 12 and 14% O-2 concentrations. Growth depression appeared related to feed consumption. Ascites heart ratio (AHR), ascites score (AS), right ventricular mass (RVM), and hematocrit (HCT) all increased (P < 0.01) as O-2 concentration decreased. Blood HCT appeared to be a more sensitive indicator of physiological change attributable to atmospheric O-2 than AHR, AS, or RVM. The data reported herein suggests that 19.6% atmospheric O-2 is the minimal allowable level for housing birds within a relatively stress-free, TN environment to avoid cardiac and HCT changes related to ascites.