Faffa Malan Chart (FAMACHA © ) is a practical on-farm system designed as selective deworming tool for Haemonchus contortus infection control. While system is becoming very popular it is not adopted in Ethiopia. Thus, the objective of this study was to validate FAMACHA © in detecting clinical anemia in sheep and goats at field level. The study was conducted in Jigjiga zone of Somali Regional State, Ethiopia from December 2011 to April 2012 on sheep (n = 192) and goats (n = 192) of various age and sex. Highly significant correlation between eye color and fecal egg count (p = 0.001) for goats and sheep (p = 0.043) was observed. There was also highly significant association between eye color and Packed Cell Volume (PCV) in sheep (p = 0.00) and goats (p = 0.005). The sensitivity of FAMACHA in detecting anemic animals was 66% for sheep and 71.43% for goats using eye scores 4 and 5 were considered as anemic at PCV <24% for sheep and <20% for goats. The present study indicated that the application of FAMACHA system for treatment protocol was promising both in goats and sheep. Therefore, the technique should be introduced as integrated diagnostic tool at field level in Ethiopia.