Baa Humbug the Psycho Sheep is a villainous sheep. The character hates Christmas and all the trimmings that go with it. Humbug eventually lost his rag on Christmas Eve 1998, picking up a Christmas tree and smacking Tails with it. He was soon defeated with the arrival of Captain Christmas, falling foul to his Pudding of Justice and Decorations of Destiny. Thanks to the Captain's special body spray, Humbug began to adore his opponent and even gave him his car, stating that the sheep needed more exercise.
- Baa Humbug's name is a play on the term "Bah Humbug", an exclamation of dislike for Christmas, and the sound a sheep makes.