We report the occurrence of lung cancer in a six months old lamb of Ouled Djellal breed from Algeria. The main clinical sign was a considerable amount of whitish foamy fluid discharge from the nostrils when the animal head was lowered and the rear end was lifted. The postmortem examination revealed the presence of enlarged, heavy and edematous lungs with diffuse or foci areas, reddish or white-gray in color. The gross and histological lesions of the lungs were compatible with pulmonary adenocarcinoma. Lung adenocarcinoma in SHEEP is caused by jaagsiekte SHEEP retrovirus (JSRV) and originated from differentiated alveolar type II cells and non-ciliated bronchiolar epithelial Clara cells. We evidenced the expression of the oncogenic JSRV by immunostaining of lung slides with specific antibodies against the JSRV envelope. The viral proteins were expressed only in the tumor cells from the affected areas. As already described in other countries, JSRV-induced lung adenocarcinoma is present in the SHEEP population in Algeria.