Apart from contributing to the climate change phenomenon, sheep production system is also sensitive to its adverse impacts. This poses a great challenge for developing sheep sector around the world. Currently the economic viability of the sheep production system worldwide is jeopardized due to the devastating effects of climate change. Among the multiple climatic stresses faced by sheep, heat stress seems to hugely destabilize production efficiency of the animals. Heat stress jeopardizes the growth, wool, meat and milk production in sheep. Further, climate change leads to several vector borne diseases to sheep by compromising the immune status of the animals. The animal employs several adaptive mechanisms to maintain homeostasis through behavioural, physiological, neuroendocrine, cellular and molecular responses to cope up to the existing climatic condition. Sheep also significantly contributes to climate change through enteric methane emission and manure management. Further, climate change can alter the rumen function and diet digestibility in sheep. Hence, enteric methane mitigation is of paramount importance to prevent both the climate change and dietary energy loss which may pave way for sustaining the economic return from these animals. Further, various other strategies are required to counter the detrimental effects of climate change on sheep production. The management strategies can be categorized as housing management, animal management and monitoring of climate, and these strategies are ultimately targeted to provide suitable microclimate for optimum sheep production. Nutritional interventions involving season-specific feeding and micronutrient supplementation may help the animal to sustain its production during adverse environmental conditions. Body condition scoring system developed specifically for sheep may help to optimize economic return in sheep farms by minimizing the input costs. Finally, sufficient emphasis must be given to develop appropriate adaptation strategies involving policymakers. These strategies include developing thermotolerant breeds using biomarkers, ensured water availability, women empowerment, early warning system and capacity building programmes for all the stakeholders. These efforts may help in augmenting sheep production in the climate change scenario.