The invention relates to the technical field of peanut straw feed processing, in particular to a method for producing pellet feed for sheep from peanut straw. The pellet feed for the sheep is prepared from raw materials by weight as follows: 53%-65% of peanut straw, 2%-5% of pine needle powder, 4.7%-8% of soybean meal, 4%-7% of corn flour, 4%-8% of Pennisetum sinese, 5%-8% of carrots, 2%-4% of yeast powder, 1%-3% of cane sugar molasses, 2%-5% of a compound premix, 0.2%-0.3% of monensin sodium, 0.1%-0.2% of bacitracin zinc, 1.0%-2.0% of table salt and the balance of distillers' grain powder. The pellet feed for the sheep has comprehensive nutritional ingredients and high benefits and is low in cost, high in cellulose content, good in palatability, proper in energy content, high in digestion rate, convenient to transport and long in storage time and cannot easily deteriorate.