The present study was mainly designed to evaluate the effect of potassium diformate (KDF) on growth performance, digestion and absorption capacity and intestinal microbes of juvenile grass carp (Ctenopharyngodon idella). Six experimental diets with KDF 0.0, 1.5, 3.0, 4.5, 6.0 and 7.5 g/kg were respectively fed to 1620 fish (5.73 ± 0.01 g) for 70 days. Results indicated that dietary KDF addition improved growth performance, intestinal growth and development, digestive enzymes and brush border enzymes activity. Additionally, mRNA levels of most amino acid transporters (AATs) and peptide transporter 1 (PepT1), and protein expressions of SLC7A1, SLC1A5 and SLC15A1 in intestine were up-regulated with addition of 3.0 g/kg KDF, which might be related to the activated TOR signaling pathway, as evident by the up-regulated mRNA levels of TOR and S6K1, the increased protein expression of phosphorylation TORSer2448, as well as the down-regulated mRNA level of 4EBP1. Furthermore, the 16S rRNA sequencing revealed that low dose of KDF addition enriched the abundances of Fusobacteria and Cetobacterium, and reduced the abundances of Proteobacteria and Ralstonia, which might be related to the reduced pH of intestine. In a word, this study using grass carp as a model provided novel evidence on the positive role and possible mechanisms of KDF in promoting fish growth.