Two separate experiments were carried out: the first one involved a study of the chemical and some intrinsic feed characteristics of raw cotton stalk (CS) and the efficiency of chemical, biological treatments on the improvement of the feed value of CS. CS was treated with chemical treatment by mixing 3% Ca (OH)2 (CS+Ca), 3% urea (CS+U), 3% urea+3% Ca (OH)2 (CS+Ca+U). Moreover, CS was treated with biological treatment by inoculation of either Lentinus edodes (CS+Po) or Pleurotus ostreatus (CS+Pl) or crushing CS by adding minor ingredient processed into pellet feed, samples from all treatment were analyzed for the nutrients, In vitro dry matter digestibility (INDMD) and free gossypol detoxification rate. The second investigated was the use of crushed or granulation CS as a test feed followed by voluntary feed intake and preference test with sheep. CS+Ca+U treatment can reach up the CP and IVDMD to 9% and 36%, respectively. CS+Po decreased the fiber component and improved CP content and IVDMD. The free gossypol content declined and the free gossypol detoxification rate reached more than 50%. By feeding sheep under the same level of concentrate and corn silage, the voluntary feed intake and daily weight gain in granulation group is higher than in crushing group (p<0.05). Crushing CS by adding minor ingredient processed into a pellet feed was best in terms of improved nutritional quality, feed intake and preference, and it was safe and practical method that can be widely used in sheep production systems, to promote the CS feed utilization in similar areas.