Growing environmental concerns and the depletion of natural resources have intensified the demand for sustainable materials in the construction industry. The building sector consumes large amounts of raw materials and significantly contributes to greenhouse gas emissions and environmental pollution. Therefore, increasing attention has been given to renewable and waste-derived materials to enhance construction sustainability. Meanwhile, rising global demand for livestock products has led to continuous growth in sheep farming, generating substantial wool quantities. On average, each sheep produces about ۲.۳–۳.۶ kg of wool annually, yet only ۱۵–۲۰% is suitable for textile applications. The remaining low-grade wool is typically treated as waste and disposed of through landfilling or burning, causing environmental issues. Sheep wool, a natural and renewable fiber, exhibits valuable properties such as low thermal conductivity, excellent acoustic absorption, inherent fire resistance, moisture regulation, and antibacterial characteristics. These features make it a promising material for use in building products such as concrete, lightweight concrete, mortars, and other cement-based composites. Incorporating sheep wool fibers into construction materials can support waste valorization, reduce environmental impacts, and improve certain engineering and functional properties of building components. This paper provides a comprehensive review of previous research on the use of sheep wool fibers in construction materials. It examines their effects on mechanical, thermal, acoustic, and durability properties of cement-based composites. Additionally, the advantages, limitations, and current research gaps are critically discussed, and future research directions are proposed to advance sustainable building materials. In particular, key challenges identified in the literature include the limited long‑term durability of wool fibers in highly alkaline cementitious environments and the lack of standardized fiber treatment and processing methods, which currently restrict their broader application in construction materials.