Growth rate, carcass attributes, and meat quality traits of small ruminants (i.e., sheep and goats) depend on various factors, among which the feeding system is one of the most important factors. However, how feeding systems affect these parameters differ between sheep and goats. Therefore, this review aimed to evaluate the differences in how different feeding systems affect the growth performance, carcass characteristics, and meat quality of sheep and goats. It also explored the effects of a new finishing strategy—time-limited grazing with supplements on these traits. Compared with stalled feeding, finishing lambs/kids on pasture-only feed reduced the average daily gain (ADG) and carcass yield, while supplemented-grazing lambs/kids had near-equivalent or higher ADG and carcass attributes. Pasture-grazing increased the meat flavor intensity and healthy fatty acid content (HFAC) of lamb/kid meat. Supplemental grazing lambs had comparable or superior meat sensory attributes and increased meat protein and HFAC compared to stall-fed ones. In contrast, supplemental grazing only improved the meat color of kids but had little effect on other meat qualities. Moreover, time-limited grazing with supplemental concentrates increased the carcass yield and meat quality in lamb meat. Overall, the effects of different feeding systems on growth performance and carcass traits were comparable between sheep and goats but differed in terms of the meat quality.