Alpha2 receptor agonists are frequently used to provide sedation and analgesia in sheep. There are numerous reports of adverse pulmonary effects following intravenous (IV) injection; however, adverse effects following subarachnoid injection (SAI) are underreported. An adult Merino wether was one of eighteen animals anaesthetised during an experimental trial modelling intervertebral disc injury. The animal was premedicated with methadone 0.1 mg/kg and midazolam 0.3 mg/kg IV. Anaesthesia was induced using alfaxalone IV and it was maintained using isoflurane, delivered in 100% oxygen by controlled mechanical ventilation. An SAI of xylazine 0.05 mg/kg diluted to 1 mL with 0.9% saline was performed at the lumbosacral site prior to recovery. This resulted in rapid narcosis, oxygen dependency and ventilatory compromise. Treatment with frusemide 1 mg/kg IV and salbutamol 0.2 mg inhaled did not attenuate the adverse cardiopulmonary effects. A rapid improvement in all physiological variables was seen following high dose atipamezole 0.05 mg/kg IV. This case report adds to the current knowledge regarding the risk for potential side effects when using alpha2 receptor agonists, such as xylazine, for the sedation or regional analgesia in sheep.