The main part of Mongolian livestock is the sheep flock. Sheep herding in Mongolia is one of the biggest in the world. By number of sheep per population Mongolia is the third after Australia and New Zealand.Mongolia has about 15 million of sheep. Annual demand of Mongolia in mutton is 5 million head of sheep. This animal is farmed for its meat, wool, skin, and milk. Mongolian sheep are very productive and they are called universal animals. Mongolian breeds like Bayad, Altaian, Torguud, Darkhan, Uzemchin, Barga’s are classified by their own unique specifics and characteristics. During socialism three well known Mongolian scientists have created Orkhon and Yeruu breeds of sheep. The average weight of a Mongolian sheep is 50 kg and they give around 1.5 kg of wool; the Orkhon breed is 75-85 kg and gives up 7.5 kg of wool. This breed is suited to the local climate. the weight of Altaian breed reaches 90 kg. Mongolian sheep breeds have been adopted to a harsh climate and are able to survive in drought, over heating, less grazing, shortages of water and moving location. Most probably other hybrids could not survive in such a climate. Foreign scientists highly marked the skills and ability of Mongolian herders for having such livestock. Local Argali is an ancestor of Mongolian sheep. Mongolians have bred sheep that have quiet behavior, short legs, round body structure that are unable to graze in the high mountain areas.Sheep wool is an important basic material for high quality woolen cloth and carpet. Wool production in Mongolia consists of 70% of sheep wool and anually produces 20 tons. Mutton has a good taste and a high quality. The weight of Mongolian mutton is almost equal to the world standard of the best breeds. Mutton is a respected meat in every country. Mongolian mutton is an important export item. Mongols offer mutton during celebration and other occasions. Mutton also has substances important for medical treatment.Mongolian sheep gives fatty milk that is useful for the production of a variety of milk products. High quality Mongolian sheep leather and skin garments are famous in the world. Unfortunately, lately the number of goats has been increasing fast by foreign business demands and the sheep population is decreasing.