The killing of sheep and goats for human consumption (slaughtering) can take place in a slaughterhouse or on-farm. The processes of slaughtering that were assessed for welfare, from the arrival of sheep and goats until their death (including slaughtering without stunning), were grouped into three main phases: pre-stunning (including arrival, unloading from the truck, lairage, handling and moving of sheep and goats); stunning (including restraint); and bleeding. Stunning methods were grouped into two categories: mechanical and electrical. Twelve welfare consequences that sheep and goats may experience during slaughter were identified: heat stress, cold stress, fatigue, prolonged thirst, prolonged hunger, impeded movement, restriction of movements, resting problems, social stress, pain, fear and distress. These welfare consequences and their relevant animal-based measures are described in detail in this Scientific Opinion. In total, 40 welfare hazards that could occur during slaughter were identified and characterised, most of them related to stunning and bleeding. Staff were identified as the origin of 39 hazards, which were attributed to the lack of appropriate skill sets needed to perform tasks or to fatigue. Measures to prevent and correct hazards were identified, and structural and managerial measures were identified as those with a crucial role in prevention. Outcome tables linking hazards, welfare consequences, animal-based measures, origin of hazards and preventive and corrective measures were developed for each process. Mitigation measures to minimise welfare consequences are proposed.