There are huge numbers of sheep populations in Dera district but their phenotypic characteristics are not identified. The study was carried out to assess the phenotypic characteristics of local sheep populations in the areas of Dera district, Northwest Ethiopia. The study was conducted from September 2017 to August 2018. Four hundred fifty randomly selected sheep individuals from purposively selected three localities (124 males and 326 females) were grouped into four age categories based on pairs of permanent incisor (PPI) as (0 PPI, 1 PPI, 2 PPI, and ≥ 3 PPI). Qualitative traits of sheep were analyzed using frequency procedure of data analysis system and Chi-square test. In the analysis of quantitative traits of sheep, Pearson correlation coefficient, general linear model univariate analysis of variance with Tukey test and regression analysis was used. Plain coat color pattern (66.2%), white coat color type (34.9%), coarse hair type (77.8%), straight head profile (86.9%), horizontal ear form (89.8%), curved horn shape (59.7%), backward horn orientation (73.6%) and short fat tail types (93.6%) were frequently observed features of sheep in the study area. The overall mean ± standard deviation of body weight, wither height, body length and rump height of local sheep in the study district were 23.56±4.7kg, 60.8±5.1cm, 55.08±4.9cm and 62.34±5.2cm, respectively. Sex, age, locality and some of their interactions had significant effects on most of quantitative physical characteristics of sheep. There were significant differences in body weight, body length, wither height, heart girth, rump height and tail length of sheep with different age groups and sexes in the study area. Significant differences were shown in ear length, horn length, tail length, rump height and wither height of sheep populations with different localities. There were strong and significant correlations (p<0.05) between body weight, body length, wither height, heart girth, rump height and other quantitative physical characteristics each other. Body weight of sheep could be predicted by using strongly correlated linear body measurements as independent variable. From the various quantitative characteristics of sheep, heart girth of sheep was the main variable used to predict body weight (F1, 448=1300.205, P<0.0001, R2=0.743737). It can be concluded that, sex of sheep had significant effect on most of qualitative traits; sex and age of sheep had significant effects on most of quantitative traits but locality did not show significant effect on most of qualitative and quantitative characteristics of sheep. Therefore, for observing significant effects of location highly, the study should be performed on large geographical area of different agro ecologies. Keywords/ Phrases: Dera district, local sheep, phenotypic characteristics, qualitative character, quantitative character