Sheep play an essential role in the rural economy for food production, cultural heritage and landscape. Despite being generally less frequently kept in the types of confinement systems that cause the greatest public concern, sheep are not free from welfare compromise. In recent years, Precision Livestock Farming (PLF) has been increasingly adopted by most of the livestock industries, but not the sheep sector, due partly to costs and lack of training. This is despite the welfare advantages that could be achieved using PLF. This chapter presents the main health and welfare challenges faced by sheep, and the current and future PLF and digital technologies that can help address them. It also presents a case study – the TechCare project, that addresses the use of PLF to improve small ruminant welfare management. We conclude on how technology can help to improve health and welfare.