Sheep lives happily on a farm with his friends. Unfortunately, a Secret Military Organization, led by General Specific, needs Sheep for its Sheep-Powered Ray Gun (with a sheep-shaped hole in it).
General Specific will get Sheep at any cost, and, knowing that the farm is at stake, Sheep is forced to leave for the big city. Now Sheep is on the run from General Specific, who is assisted by his henchmen, Private Public, the Angry Scientist (who in the show is often wrongly referred to as "Mad Scientist"), a bunch of other military types, and the Plot Device.
In addition, Sheep has to come to grips with the Big City and trying to romance his love, Swanky the Poodle. All the while, he has to avoid the attentions of a host of unwelcome characters — Lisa Rental and Swanky's owner, the sheep-hating Lady Richington, wielding a stainless-steel wig.