This chapter describes the sheep dairy industry and begins by analysing the advantages and disadvantages of different sheep breeds for production of high-quality sheep milk. The chapter addresses in detail various issues arising from the dairy farming of sheep, including frequency of milking, the nutritional needs of pregnant and lactating ewes, the weaning of lambs, photoperiod and season. It also examines milk quality and the common problem of mastitis in ewes and possible prevention and management strategies for the condition. The chapter concludes with future directions the sheep dairy industry might take and points the reader towards further reading on the subject.