This study aims to assess the small ruminant value chain in Al-Ruwaished District, Jordan, to identify the potential intervention areas that could improve the production efficiency and guarantee the sustainability of the small ruminant sector in this area. Sheep breeding is the source of livelihood for most of the people in Al-Ruwaished District, which is characterized by the large number of sheep and goats. We surveyed 5.0% of the small ruminant holders in the study area and conducted individual interviews and surveys with the potential actors in the value chain to undertake a small ruminant value chain analysis. From the survey, we found that the small ruminant value chain consists of five core functions, namely, input supply, production management, marketing, processing, and consumption. Despite the stable impression given by the large number of holdings in the small ruminant sector, the surveyed results show a clear fragility in the value chain of small ruminants in this area. The small ruminant production system is negatively impacted by climate change, especially continuous drought. In addition, the high prices of feed that the farmer cannot afford with clear and real absence of the governmental and non-governmental support activities also impact the development of the value chain. The results of strengths, weaknesses, opportunities, and threats (SWOT) analysis reveal that the major constraints faced by this value chain could be divided into external and internal threats. Specifically, the most prominent external threats are the nature of the desert land and continuous drought, while the major internal threats are the absence of appropriate infrastructure, shortage of inputs, and weakness in the production management and marketing. We proposed solutions to these challenges to ensure the sustainability and effectiveness of the sector, such as the formulation of emergency response plans to severe weather, qualifying farmers’ skills, and establishment of agricultural cooperative societies.