They are a type of livestock that live inside the player's barn on Ranch Island. Healthy sheep can live for up to 5 years.
You must first have a barn built by Gannon on your farm. Once you do, they will become available for purchase for 4,000G each from Mirabelle's shop.
Sheep must be fed every day. If sheep are put outside, they will eat planted grass grown on the player's farm. They will only eat mature grass, so upkeep of grass is essential when letting your animals graze outside. When sheep are inside the barn, they will eat one piece of fodder per day.
Shearing, brushing and interacting with your sheep are all good ways to increase friendship levels. Animals can also be left outside in good weather for additional friendship. Playing the petting mini-game when given the chance and playing the shearing mini-game also provide additional boosts in friendship, although these happen at random. Utilizing Wonderfuls on tools like the shears and brush can also expedite the friendship process.
As you increase friendship points with your sheep, the quality of wool will go up. If you win the sheep contest (by entering a sheep with 8 hearts or more), they will start to produce s-rank wool, and you'll be able to purchase Suffolk Sheep.
If you use a Miracle Potion on a sheep, the sheep must not be sheared for the potion to work. A sheep will give birth in 16 days, and it will take another full 16 days from the birth for a sheep to be full grown. Sheep will live for approximately 5 years if they are properly cared for.
Sick sheep must be cured with Animal Medicine, which can also be purchased from Mirabelle's.
An adult sheep can be sheared using a pair of clippers every 3 days. Wool can be sold as is or turned into yarn, if the player has a yarn maker.