The primary goal of this research was to clear up the clinical observations and probable aetiological agents of cutaneous nodules of a sheep flock belonged to Military farm located in Manqubad village at Assiut Governorate. Source of infection as well as antibiogram of isolated organism was also achieved. Of seventy nine adults sheep < /strong>, forty eight were found to be suffering from cutaneous nodules. History, clinical and necropsy findings were described. Microbiological examinations and pathogenicity test (mice inoculation test) revealed that pathogenic strains of Cryptococcus (Cr) neoformans yeast cells were recovered from the collected samples. No bacterial nor fungal pathogens were detected. The chief clinical symptoms of infected sheep were semicircular caseated nodules on various p < /strong>arts of the animals' skin particularly on the inner side of the tail. Respiratory disorders were observed in the most infected animals. Pigeons may act as carriers hosts and they may play a pivotal role in spread of Cr. neoformans infection. Apparently, heavy infestation of gastro-intestinal parasitism may produce a chance for cryptococcal infection through minimizing the immunological states of the host. Cr. neoformans was overstrongly sensitive to garlic juice in vitro in comparison with nystatin. Neomycin and polymixin B were found to be infective.