The article presents sheep-farming as an example of multifunctional agriculture. The described branch of production is an optimum solution for agricultural activity in the mountainous regions from the point of view of their natural conditions and the relatively low capital intensity of such production. Sheep-farming represents a unique combination of the production of numerous marketable goods and public goods important for the entire society. It also is a highly sustainable branch of production which offers economic opportunities and which is conducive to social stability and permits to show care for the natural environment. The resumption of this almost relinquished activity offers a chance for infusing new life into the mountainous regions.