Sheep have been known to eat Sextants. They carry wool, raw steaks, and sometimes gold. Three bundles of wool can be tailored into a roll of cloth. There is a Quest at Paralia's House of Style in Lerilin that requires 10 Bundles of Wool in exchange for 3 Rolls of Cloth.
Sheep are fairly useless as Pets, but they can be used to kill other sheep in order to improve one's Taming skill. Sheep may also be used as pets to trail behind a player and slow the advance of creatures following. Pet sheep eat Loaves of Bread and bananas. Sheep appear as white dots on the map when succesfully tracked using tracking .
Spotted: Shallow Woods, medium-size herds (as also near-ish to Lerilin), in some cities (if no wolves, which attack sheep on contact).