Sheep bears some similarity to the video game Lemmings. The player can choose between 4 herders, the people Adam Halfpint and Bo Peep, and the dogs Motley and Shep.
The player must then guide sheep of 4 types (Factorial, Longwool, NeoGenetic, and Pastoral), actually aliens from the planet Ovis Aries, through a series of obstacles to the finish line in the level.
There are a series of different worlds, starting with Polygon Farm and on to others, such as Village Fete and Lost in Space. If the players collect all the golden sheep trophies in a world, they will unlock a bonus game, where they for example, are riding a sheep, and have to collect trapped sheep in bubbles.
There are several obstacles that vary from world to world, including tractors, knights, archers and demonic chefs. Eventually, the players must thwart the schemes of the mad scientist Mr. Pear and his hench-cows.