A longitudinal study was conducted to determine the infection rate of gastrointestinal parasites in diarrheic and non-diarrheic sheep and goats along with therapeutic efficacy of different drugs from October, 2010 to October, 2011 in Lahore (Punjab), Pakistan. A total of 480 fecal samples comprising of 240 samples from sheep and 240 from goats were examined to check the presence of gastrointestinal parasitic infection. Out of 240 samples of sheep 173 (72.08%) samples were positive while out of 240 samples of goats 161 (67.08%) samples were positive. Higher infection rate of gastrointestinal parasites among sheep was recorded as compared to goats. While comparing class wise helminthic infection rate, parasites of class Nematoda (46.25% sheep; 44.17% goats) showed top prevalence, followed by Trematoda (20.42% sheep; 18.33% goats) and Cestoda (5.42% sheep; 4.58% goats). The efficacy of levamisol + oxyclozanide was observed to be 48, 76 and 88% in sheep, 56, 75 and 90% in goats after 3rd, 7th and 14th day of treatment, respectively. Albendazole proved to be less effective showing 57, 74 and 86% in sheep, 64, 77 and 87% efficacy in goats at 3rd, 7th and 14th day of treatment, respectively. Neem leaf seed powder was least effective against gastrointestinal parasites showing efficacy 16, 31 and 43% in sheep, 15, 23 and 40% in goats on 3rd, 7th and 14th day of treatment, respectively. It was concluded that gastrointestinal helminths in sheep and goats are of considerable significance in Lahore, while levamisol + oxyclozanide is the best effective drug against gastrointestinal parasites in both sheep and goats.