Studies related to the use of steel mill slag have become essential, because of the possibility of its use as a component of substrates in the production of seedlings and because this use minimizes the risk of environmental contamination, resulting from inadequate disposal. Thus, the objective of this work was to evaluate the effect of increasing levels of steel slag in substrates composed of soil with tanned bovine manure and sand, on the growth variables and the quality of “Dedo-de-moça” pepper (Capsicum baccatum L.) seedlings. A randomized block design was used with five slag concentrations (0%, 2.5%, 5%, 10% and 20%) and four repetitions. Evaluations occurred at 55 days after sowing, consisting of counting the number of leaves, measuring plant height and collar diameter, quantifying the dry mass of leaves and roots and determining the Dickson Quality Index. Regression models were fitted (P < 0.05) to treatments with increasing levels of steel slag. The addition around 10% of slag to the substrate provided the highest values of growth variables, in seedlings of Dedo-de-moça pepper.