Perched at 9,600 feet in the southern Bighorn Mountains, the Sheep Mountain Lookout began as a primitive fire watch station in 1922 to spot blazes across the vast timberlands west of Buffalo. The high, exposed ridge proved a dangerous assignment; during a severe summer storm in 1938, a direct lightning strike shattered the structure's windows and literally set the lookout’s bed on fire. Though temporarily deafened, the observer managed to fix his telephone lines and report his survival before seeking medical aid.

Recognizing the need for a sturdier facility, the U.S. Forest Service utilized Civilian Conservation Corps (CCC) labor to build the current two-story wood-frame cabin, which was completed in 1950. While advancements in aerial fire patrols eventually retired the tower from active duty in the 1970s, it remains preserved today on the National Historic Lookout Register.