We report on the neutron response of the LAMBDA spectrometer developed earlier for high-energy γ-ray measurement. The energy dependent neutron detection efficiency of the spectrometer has been measured using the time-of-flight (TOF) technique and compared with that of an organic liquid scintillator based neutron detector (BC501A). The extracted efficiencies have also been compared with those obtained from Monte Carlo GEANT4 simulation. We have also measured the average interaction length of neutrons in the BaF 2 crystal in a separate experiment, in order to determine the TOF energy resolution. Finally, the LAMBDA spectrometer has been tested in an in-beam-experiment by measuring neutron energy spectra in the 4 He+ 93 Nb reaction to extract nuclear level density parameters. Nuclear level density parameters obtained by the LAMBDA spectrometer were found to be consistent with those obtained by the BC501A neutron detector, indicating that the spectrometer can be efficiently used as a neutron detector to measure the nuclear level density parameter.