The most common and most likely answer to this crossword clue is the 5 letter word BRAXY
B
R
A
X
Y
Buddy explains!
The straight part
We know that "Diseased sheep" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case diseased sheep = braxy.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does BRAXY mean?
BRAXY noun- An inflammatory disease of sheep.
- Meat from sheep that have died from this disease, or that have died from accident or disease in general.
- Sick with braxy