An outbreak occurred in sheep and goats in triangular area (Shalateen –Abu-Ramad and Halaeeb), Red Sea Governorate, Egypt was described between January to December 2013.This outbreak showed clinical signs characterized by fever, in appetence, emaciation, anemia, icterus and ill-thrift. Clinical signs are most likely to be observed in young suckling and weaner animals. It is shown to be a complex problem attributable to many causes, some of which can be eliminated by supplementary feeding, drenching, vaccination, dipping and management. However, severe prolonged anemia accompanied by the development of ill-thrift still present in 248 animals (165 sheep and 83 goats). Infection with Eperythrozoon ovis was demonstrated in 21.42% and 12.50% of lambs and kids, 41.37 % and 28.75% of weaner sheep and goats and 10.75 % and 8.51% of adult sheep and goats respectively. When the general prevalence was analyzed by age, it was observed that weaners were mostly affected and disease was highly observed during winter and summer. Hematological examination showed macrocytic hemolytic anemia, with anisocytosis, poikilocytosis and marked left shift in erythrocyte maturation. Infected sheep and goats showed significant reduction in values of Hb, PCV and RBC while leukocytic count appeared slightly elevated. The main pathological changes in E. ovis infection were an increase in size of spleen at the peak of parasitaemia and an increase in liver size. Haemosiderin was present in livers, kidneys and spleens of all infected sheep and goats at the peak and late stages of parasitaemia.