Sheep can be used for leveling a Dragon just like donating a regular Dragon but with a greater effect on the experience gained. Make sure that you match the color of the Sheep with the color of the Dragon you want to level.

Adding a Sheep will count as adding a Dragon in the leveling pool which has a limit of 10 Dragons.

Sheep affect the Ability Rank Up chance with the same % as a Dragon of the same rarity.