The Mediterranean region of the Republic of Croatia shows notable advantages for breeding dairy sheep compared to the continental area. Therefore, crossbreeding between domestic Istrian sheep (IS) and imported Sardinian (S) and East-Friesian (EF) sheep has been made in order to create improved domestic dairy sheep. This study presents results of breeding work over several years in the region of Istria. Data on the conformation of domestic genotypes, milk production, fertility and fattening capability are reported. Results have shown an increased milk production of the new sheep genotypes, which has an influence on the increasing profitability of this type of stock production.