The role of small ruminant production in achieving sustainable and resilient food systems in low- and middle-income countries (LMICs) is yet to be fully explored or incorporated into current agroecological practices and policies. This review examines the principles and practices of agroecology, focusing on circular food systems and the sociopolitical aspects of their implementation for small ruminant production in LMICs. It discusses Gliessman’s five levels of agroecological transition and eight principles for integrating small ruminant production into agroecology: input reduction, animal health, soil health, biodiversity, recycling, synergy, economic diversification, and co-creation of knowledge. The review highlights that, while there are differing interpretations in the scientific literature, there is a growing consensus that agroecological practices applied to small ruminant production have the potential to improve integration and self-sufficiency in farming systems, improve animal health, reduce reliance on external inputs, and promote circularity and biodiversity. This reinforces the view that agroecological approaches to small ruminant production can foster a sustainable and interconnected system that strengthens the relationships between animals, plants, and the environment and enhances circularity. To achieve successful implementation and widespread adoption of these approaches, it is crucial to facilitate greater collaboration and cocreation of knowledge among small ruminant farmers and stakeholders in the small ruminant livestock industry.