Functional oils are known for their compounds with antioxidant, antimicrobial and anti-inflammatory properties, and are used in ruminant nutrition as alternatives to chemicals in order to improve performance. This study aimed to compare the influence of castor and cashew nut shell oils with pure organic selenium (hydroxy-selenomethionine) plus vitamin E, which are known and well-stablished antioxidants, on the performance traits, shelf life and microbial quality of the meat, physiological functions and oxidative stress control of lambs. Thirty-two Dorper x Santa Ines lambs (initial bodyweight of 22.42 ± 3.9 kg and 60 days of age) were submitted to a diet consisting of Cynodon dactylon hay (6%) and concentrate (94%). The animals were divided into four treatments: control, without additives; functional oils (FO), 0.50 g/kg DM of castor and cashew nut shell oils; hydroxy-selenomethionine and vitamin E (SeE), 0.50 mg/kg of organic selenium and 100 IU/kg DM of vitamin E; FO plus SeE, at the same doses as the other groups. Blood samples were collected after 1, 30 and 53 days on feed. After 54 days, the lambs were slaughtered and rumen health, carcass and meat traits, shelf life, and microbiological quality were evaluated. There were no differences in performance or carcass traits. A higher muscle and serum Se concentration (p < 0.0001), lower lipid peroxidation in meat during display (p < 0.0001), and a lower count of psychrotrophic microorganisms on day 5 were observed in the SeE and FO plus SeE groups. The treatments reduced the counts of Enterobacteriaceae, and Staphylococcus spp. FO animals showed higher GSH-Px activity on day 30, while the peroxidase activity was higher in FO plus SeE animals (p = 0.035). SeE and FO plus SeE animals had lower serum ALT and AST levels. Functional oils improved the microbiological quality of meat. Hydroxy-selenomethionine and vitamin E prevented oxidative stress, lipid peroxidation, and microbial spoilage.