The objectives of this experiment were to evaluate the accuracy of ultrasonography to measure subcutaneous fat thickness (SFT) and LM traits (area, depth, and width) in live Awassi lambs of different sexes, predict actual SFT and LM traits without damage to the carcass, and improve carcass classification. Data were obtained from ultrasound scans of 20 female and 10 male lambs. Female lambs were randomly divided into light (FL; n = 10) and heavy (FH; n = 10) finishing groups. Slaughter weights of lambs in FL were 30 kg and for FH and male groups were 40 kg. Subcutaneous fat thickness and LM traits, cross-sectional area between the 12th and 13th rib were measured using real-time ultrasound in vivo and on the carcass after slaughter. All ultrasound and carcass measurements were different (P > 0.05) except carcass yield and carcass LM width in female lambs (FL and FH). Between different sex groups, all ultrasound and carcass measurements were the same except ultrasound SFT (USFT; P = 0.04) and carcass SFT (CSFT; P = 0.03). Significant correlation coefficients were between USFT and CSFT (0.93, P < 0.01; 0.76, P = 0.02), ultrasound LM depth (ULMD) and carcass LM depth (CLMD; 0.64, P = 0.05; 0.77, P < 0.01), and ultrasound LM area (ULMA) and carcass LM area (CLMA; 0.88, 0.84; P < 0.01) for female lambs in FL and FH groups. Also, similar correlations were determined significantly between USFT and CSFT (0.84, P < 0.01; 0.76, P = 0.02), ULMD and CLMD (0.69, P = 0.03; 0.77, P < 0.01), and ULMA and CLMA (0.88, 0.84; P < 0.01) for male lambs in male and FH groups. The introduction of USFT and ULMA as independent variables in addition to BW in the multiple regression equations further improved the variations for CSFT (88, 75, and 81%) and CLMA (78, 90, and 80%) for lambs in FL, FH, and male groups, respectively, whereas no improvement was observed for cold carcass weight with the exception of the FH group and carcass yield. These results indicate that in vivo USFT and ULMA in association with BW could be used to estimate CSFT, CLMA, and cold carcass weight ultrasound findings about LM, and SFT can be included to the selection programs for different BW and sex of Awassi lambs.