This quest will appear in your journal when you check the "Missing Wooly" poster on the notice board during the "Where Misery Gathers" quest.
Unknown assailants have apparently taken a child's animal companion, Wooly, by force. Listen to the child's story.
Rewards: Medium Bag x1, Fleece x5

1. Speak with the crying child
Head to Bloomwood Ranch. You will find a group of kids there, one of whom - Willian - is crying over the loss of their favorite sheep, Wooly. Approach the child and speak with them.

2. Get information on the missing sheep from the men
Head south of the farm. On the other side of the road running alongside the farm, you should notice two shepherds. Speak with them.

3. Gather information on the missing sheep from the children
You will find the children you should speak with slightly to the west of the shepherds, near the triangular fork in the road.

4. Find Wooly, the sheep
The bandit camp where the sheep was taken is located to the south, across the river. Once you arrive, start by taking out the nearby bandits so they don't interfere.

There's a chance that you'll learn the Dropkick move while fighting one of them.

Once it’s safe, enter the pen where the sheep is located and pick it up.

5. Return to Willian
Return to Willian with the sheep. You don't have to carry it on foot; you can mount your horse while holding it. Willian will be waiting in a slightly different spot, closer to the road under a tree. Once you return the sheep, the quest will end and the boy will mention another Greymane. You can follow him, but it's just a waste of time - the man he mentioned will have already disappeared.

The sheep was recovered from the bandits, but Willian remained upset, claiming that the sheep is not Wooly.