These cute and fluffy creatures are useful because you can get soft Wool from them. You can tame the first sheep when passing the Kata'el Lake. The Sheepfold is already in the camp, but it is slightly destroyed and needs to be restored.

To collect Wool from a sheep, you must first feed it well with ground corn. You will need Сorn and Millstones to make a Sheep Feed. As soon as the feed is ready, it'll move to the Sheepfold. Drag the feed to the sheep in the Sheepfold, and you will get Wool.