Present study was designed to find out the prevalence and associated risk factors of Toxoplasma gondii infection in sheep and goats present in northern parts of Punjab province, Pakistan. For this purpose serum samples collected from 413 sheep and 419 goats were tested for detection of anti-Toxoplasma-IgG and IgM antibodies by using enzyme linked immunosorbent assay. The results showed that overall prevalence of T gondii antibodies in sheep and goats was 18.16% (75/413) and 14.32% (60/419) respectively. Prevalence of IgG antibodies was 15.49% (64/413) in sheep and 11.93% (50/419) in goats while IgM antibody prevalence was 3.39% (14/413) and 2.86% (121419) in sheep and goats respectively. Infection was more common in female and older animals. Other statistically significant risk factors in sheep were poor hygienic conditions (OR = 4.91, p<0.01), presence of cats (OR = 2.08, p<0.05), extensive farming practice (OR = 2.19, p<0.05), flock size larger than 50 individuals (OR = 4.24, p<0.01) and pregnancy (OR =2.50, p<0.05). Similarly statistically significant risk factors in goats were poor hygienic condition (OR = 2.06, p<0.05), usage of outdoor water source (OR = 2.06, p<0.01), presence of cats (OR = 2.03, p<0.05), extensive farming practice (OR = 2.25, p<0.05) and flock sized larger than 30 (OR = 4.24, p<0.05) and 50 (OR = 6.82, p<0.01) individuals. Seroprevalence was significantly high in salt range sheep as compared to other breeds of sheep (OR = 5.51, p<0.01). Results indicate that T gondii infection is widely prevalent in sheep and goats of northern Punjab, Pakistan and may have important consideration for livestock industry and public health.