A study on Mecheri breed of sheep was undertaken with the objectives of analysing the effect of transportation on physical parameters and economic loss in sheep. A total number of healthy sheep (36 males and 36 females) were randomly selected which had been transported by mini-lorry from two places namely Thiruvannamalai (Group I - 180 kms) and Guntur (Group II - 410 kms) to the Perambur slaughter house, Chennai which took nearly four hours and ten hours respectively. Significant (P<0.01) loss of body weight and significant (P<0.01) increase in skin fold thickness were evident in both groups immediately after transportation. However, loss of body weight (0.79 kg) and increase in skin fold thickness (0.46 mm) was signiflcantly (P<0.01) higher in group II animals compared to group I animals. The economic loss was higher in group II (Rs. 5238) compared to group I (Rs. 2519) animals.