Cases of rabies in sheep occurring in November 2003, in central Rio Grande do Sul state, Brazil, are described. A 3-month-old male, and a 2.5-month-old female sheep were affected. Clinical signs were characterized by abnormal gait, trembling, lateral recumbency, convulsion, opisthotonus, and fever. Histological findings included a non-suppurative myelomeningoencephalitis associated with intracytoplasmic eosinophilic inclusion (Negri) bodies in neurons. Lesions were predominantly observed in gray matter of the spinal cord, brainstem and cerebellum. There was non-suppurative Gasserian ganglionitis in one sheep in which this structure was examined. Immunohistochemistry using rabies virus ribonucleoprotein polyclonal antibody yelded positive result in brain tissue from both sheep. The cases herein reported occurred concomitantly to an outbreak of bat transmitted rabies in cattle in the same region and were considered, on epidemiological basis, to be transmitted by bats, as occurs in endemic bovine rabies in Rio Grande do Sul.