The objective of this study was to determine the effect of the moisture content and pellet mill type on the physical and chemical characteristics of Italian ryegrass (IRG) pellet. Moisture content of raw material significantly (p<0.05) affected IRG pellet formation. Moisture content at 25% was the best condition for IRG pellet formation in terms of shape, power load and temperature changes. The hardness of pellet was decreased when moisture content was increase. However, the hardness of pellet was not affected by pellet mill type. Moisture content at 30% dramatically (p<0.05) decreased the durability compared to moisture content at 25%. Dry matter content of IRG pellet was increased (p<0.05) after pelleting. Total count of microorganism was decreased in pellet due to pressure heat and moisture losses during the pelleting process. These results indicated that the proper moisture content of Italian ryegrass pelleting would be at 25%. In addition, Roll & flat die type would be more suitable than Ring die and Die & flat die type in IRG pelleting. Pelleting works would be beneficial for improving forage quality and long storage.