As a Salmo River tributary, Sheep Creek follows the regional trout/char quota with one binding exception: bull trout are catch-and-release across the entire Salmo River watershed, a bait ban applies, and the regional Apr 1–Jun 14 stream closure and single-barbless-hook rule both apply. Confirm the current synopsis before you fish.

Sheep Creek runs about 17 km (stream order 5, well down the network toward river scale) through the mountains south of the village of Salmo, joining the Salmo River as one of its principal tributaries. It gave its name to the Sheep Creek gold camp, a major lode-gold district first staked in the 1890s that produced close to 750,000 ounces of gold between 1899 and 1916 and again from 1934 to 1942, most of it from the Yellowstone mine, with the Queen, Kootenay Belle, Nugget, Motherlode and Reno mines adding to the total. Old workings and mining townsites still dot the drainage. Aspen Creek joins Sheep Creek as a tributary of its own.

Radio-telemetry tracking in the Salmo watershed identified Sheep Creek as one of five primary bull trout spawning areas, alongside the upper Salmo River, Clearwater Creek, the South Salmo River and Stagleap Creek, with tagged fish using tributary habitat far more heavily than the mainstem. Spawning in Sheep Creek specifically may be limited by redd superimposition and reduced gravel recruitment, so the creek supports the run without offering ideal spawning ground. The wider Salmo watershed's bull trout are blue-listed, a species of special concern; population counts fell from roughly 200 spawning adults in the late 1990s to about 60 by 2009.

Provincial fish and stream inventory data records direct catches of brook trout, bull trout, rainbow trout and westslope cutthroat trout in Sheep Creek, along with longnose dace and slimy sculpin, both a food source for the resident trout and char.

Sheep Creek fishes like a small, technical Kootenay tributary: short drifts with a buoyant attractor dry over a light dropper, working the pocket water and heads of pools (median channel width ~9.9 m, moderate; median gradient ~4.27%, steep; peak mean-annual discharge ~2.965 m³/s, low flow). Start with a Stimulator or Royal Wulff for cutthroat and rainbow, switch to an Adams or Elk Hair Caddis when fish get selective, and carry Hare's Ear, Pheasant Tail and Prince nymphs plus a Pat's Rubber Legs for the pocket water. Every bull trout here goes back immediately: the population is blue-listed and catch-and-release across the whole Salmo watershed, so keep any char wet and release it without a fight, and think twice about fishing streamer water for bull trout during the July–August spawning migration. No direct hatch sample exists for Sheep Creek, so lean on the general West Kootenay stonefly, mayfly and caddis calendar until a local report says otherwise.

Sheep Creek Forest Service Road runs up the drainage from Highway 3, about 14 km east of and south of Salmo, and doubles as the trailhead access for the Panther, Curtis and Waldie subalpine-lake hikes higher in the watershed. It's a 4x4-friendly road with no permit required outside winter, when local snowmobile clubs hold area permits. No dedicated angler parking or launch has surfaced beyond that road.