Simple Summary: Sheep is one of the most economically important animals used as a source of meat, milk, wool, and fur for human society. These commodities are essential for human being. Body growth, body weight, carcass quality, fat percent, fertility, milk yield, wool, horn type and coat color are essential and useful sheep traits. Understanding the genetic background of these traits is paramount to increase the production and productivity of domestic animals. The availability of genomic data, development of molecular breeding techniques, and genome technologies have come to play a vital role in understanding the genetic background of different animal traits. This is directly or indirectly helpful for the practice of genetic improvement of economically important traits in sheep. The identification of genomic regions, genes associated with phenotypic traits, and description of gene function are some of the applied research activities to understand the genetics of livestock species. The aim of this review is to discuss and summarize different reported research findings on identified genomic regions and candidate genes related with economically important traits as well as gene annotation in sheep.Abstract: Sheep (Ovis aries) is one of the most economically, culturally, and socially important domestic animals. They are reared primarily for meat, milk, wool, and fur production. Sheep were reared using natural selection for a long period of time to offer these traits. In fact, this production system has been slowing the productivity and production potential of the sheep. To improve production efficiency and productivity of this animal through genetic improvement technologies, understanding the genetic background of traits such as body growth, weight, carcass quality, fat percent, fertility, milk yield, wool quality, horn type, and coat color is essential. With the development and utilization of animal genotyping technologies and gene identification methods, many functional genes and genetic variants associated with economically important phenotypic traits have been identified and annotated. This is useful and presented an opportunity to increase the pace of animal genetic gain. Quantitative trait loci and genome wide association study have been playing an important role in identifying candidate genes and animal characterization. This review provides comprehensive information on the identified genomic regions and candidate genes associated with production and reproduction traits, and gene function in sheep.