Abstract. Mohammed N, Alemayehu K, Getachew T. 2017. On-farm phenotypic characterization of indigenous sheep population and its cross with awassi in selected Districts of South Wollo, Amhara, This study aimed at investigating the phenotypic diversity of indigenous sheep breeds in selected districts of south Wollo highlands and to assess the effect of crossbreeding of Wollo sheep with Awassi on growth and morphological characters under stallholder management of eastern Amhara, Ethiopia. Three districts were selected purposely based on their sheep flock size, sheep production potential and their contribution to the farmers. Body weight and linear body measurements were taken from 525 mature indigenous sheep and Local x Awassi crossbred. Body weight and most of the linear body measurements of indigenous sheep population were significantly affected by the district. Crossbred had significantly higher body weight and body measurements than indigenous sheep in Legambo district. Sex had significant effect on body weight, wither height and rump height for Awassi crossbred. Body weight and all linear body measurements were significantly influenced by age group. Sex and age group interaction significantly affected body weight and most linear measurements of indigenous sheep, and significantly affected wither height and rump height of local x Awassi crossbred. There was a positive and strong correlation between body weight and chest girth of indigenous female sheep as well as between rump height, body length, chest girth, wither height and body weight of indigenous male sheep. Positive and strong correlation between body weight and chest girth was observed for Awassi crossbred female. Chest girth and body length for indigenous and local x Awassi crossbred sheep could be used for the prediction of body weight. The body weight of local x Awassi crossbred (28.75±0.49 kg) was higher than the indigenous sheep (22.19±0.41 kg) in Legambo district. As the conclusion indigenous sheep has potential for improving livelihood and economy of smallholder farmers using crossbred in the study areas.