AbstractThis chapter gives a detailed presentation of grazing-based sheep farming, emphasizing the central role animal and farm management practices have on the broader environment. The impacts on soil, water, aboveground and atmospheric environments are discussed in detail. Mitigation measures that may reduce the negative environmental impacts of a sheep farming enterprise or practice are reviewed, as well as the implications for public administrations involved with formulating relevant policy. Finally, future research needs that may further our understanding of underlying processes are given.