Fatty acids have been identified in sheep milk by GC/MS technique and it compared with cow milk. Sheep milk was contained of Odd fatty acids which uncommon in cow milk fat such as cyclo and branch fatty acids. On the other hand, the results showed that the sheep milk fat has been contained of Conjugated fatty acids. Sheep milk was used in manufacturing yogurt and total acidity percentage, total count of lactic acid Bactria and Conjugated linoleic acid (CLA) concentration have been increased during incubation period. Locally manufactured yogurt from sheep milk has been superiority with its antioxidant activity and reducing power and tying ability ferrous ion with yogurt manufactured from cow milk. Yogurt manufactured from sheep milk has ability to retardation corn oil oxidation at different incubation periods