A sheepskin is the hide of a sheep with its wool still attached. After a sheep is sheared, the skin can be tanned (treated and preserved) with the fleece intact, creating a soft, warm material. People use sheepskins as rugs, blankets, or seat covers. In cold climates, sheepskin boots and coats keep people warm because the wool traps air and insulates better than most fabrics.

The word also means a diploma, especially a college degree. Long ago, universities printed diplomas on parchment made from sheepskin. Today, diplomas are printed on paper, but people still call them sheepskins. When someone says they're “going to college to get their sheepskin,” they mean they're working toward earning a degree. A parent might hang their sheepskin on the office wall to remember the years of hard work it took to earn it.