Mutton has long been favored by people as a good tonic, and modern nutrition research has also proved that mutton is a high-quality ideal meat. The mutton sheep industry is one of the four superior industries in Sichuan. Based on the agricultural industry system of mutton sheep in Sichuan, this paper summarizes the mutton sheep breeds and the farming systems of leading enterprises in Sichuan, analyzes the current status of the processing of mutton soup, roast mutton, chilled and frozen mutton carcass, and cured mutton. Also, this paper analyzes the problems existing in the mutton sheep industry and discusses its development trend, aiming to help in the development of the mutton sheep industry.