The present study was undertaken to find out the occurrence of the hydatidosis in 3.31% (6/181) affected sheep by examination of the carcasses of the slaughtered sheep in Bareilly slaughterhouse. Grossly, there was the presence of variables sizes solitary to multiple grayish-white cysts embedded in lung parenchyma. These cysts were either confined to a single lobe mostly on diaphragmatic lobes or in some cases all over the lobes of lungs. Histopathologically, the cysts were characterized by laminated and closely encapsulated by an adventitial layer, consisting of an inner wide zone of hyalinized material composed of a concentric bundle of collagen fibers is demonstrated by using Masson's trichrome stains.