Theoretical analyses have shown the radiation use efficiency of maize, soybean, and peanut to increase with a decrease in the level of incident radiation and an increase in the proportion of diffuse radiation. This study compared the growth and radiation use efficiency of Panicum maximum cv. Petrie (green panic) and Bothriochloa insculpta cv. Bisset (creeping bluegrass) beneath shading treatments (birdguard and solarweave shadecloths) with that in full sunlight. A level of incident radiation reduced by 25% under birdguard shadecloth decreased final yield and final leaf area index, but increased canopy leaf nitrogen concentration and radiation use efficiency (19-14%) (compared with the full sun treatment). A similar level of reduced incident radiation under solarweave shadecloth (which provided an increased proportion of diffuse radiation), increased final yield and radiation use efficiency (46-50%). An understanding of the effects of composition of incident radiation on radiation use efficiency of tropical grasses enables more accurate estimation of potential pasture growth in shaded environments. It also has impact upon crop production in glasshouses and greenhouses.