Hypospadias associated with urethral diverticula are sporadically reported in kids and lambs in Pakistan. During January to June 2012, two goat kids, ranging in age between 3-5months, were referred to the Surgery Clinic at the University of Veterinary & Animal Sciences, Lahore, Pakistan. The patients showed signs of dysuria, stranguria and urine scalding associated with fluctuating swellings in the penile region; the diagnosis was hypospadias and urethral diverticulum, since urine had leaked into the subcutaneous tissue of the prepuce, forming leaking pockets (diverticula) in both. The opening of the urethra was located at the penile position in both kids. Testicular and penile hypoplasia was observed in one kid, whereas, no other abnormality was observed in the other. In both cases, permanent penile urethrostomy and diverticulectomy was performed in the region of the defect. On opening the diverticulum in one goat kid, however, two rudimentary urethral orifices were found, one of which (a blind pouch), was closed using a transfixing ligature, while the other, which communicated with the penile urethra, was surgically opened up for a permanent urethrostomy.. Finally, the urethral epithelium was sutured with the skin using 2-0 Mersilk sutures in a simple interrupted pattern. No post-operative complications were reported by the owners of either animal.