This study was conducted in Bahir Oar Zuria Woreda of West Gojjam Zone, Amhara Region with the objectives of characterizing sheep production system, identifying constraints and opportunities and studying status and prospects of sheep fattening practice. Simple random sampling method was employed to identify the sample peasant associations (PAs) and respondents. Five PAs and 24 households per PA engaged in sheep production were selected. Accordingly, 120 households were selected for the survey work. The data collected using semi-structured questionnaire and informal discussion were analyzed using descriptive statistics and general linear model procedure of SPSS software. Sheep production system of the area was characterized. According to the result of this study, sheep production system of the study area was sedentary crop-livestock production system, extensive, low input, low output and traditional; it is sheep-teff production system, the main feed source being crop residue next to pasture grass. Sheep fattening was practiced by 53.3% of respondents and one cycle/phase of finishing sheep per year was noticed more frequently. The most common fattening length of time was found to be 90 days (3 months) per cycle. Market outlet for finished sheep was both local community and Bahir Oar town markets according to 40.6% of respondents. The major constraints of sheep production were feed shortage, disease/parasite prevalence, inadequate pasture land, financial constraints, high feed cost, lack of space, and lack of improved genotype in decreasing order of importance. Presence of market accessibility, twin lambing, and presence of credit service are major opportunities for sheep production. Although sheep population of the study area was very high and sheep production is major livestock activity next to cattle, less attention given to sheep in management practices especially with regard to feeding has been observed, giving more attention only to cattle. Thus, this needs attitudinal change of smallholder producers by realizing the usefulness of sheep. Moreover, development interventions like extension packages of sheep production need to target vulnerable women and children, which are working labor forces readily available in the study area.