Phloretin, a natural dihydrochalcone flavonoid, is recognized for its potent antioxidant, anti-apoptotic, and anti-inflammatory properties. This study investigated the effects of phloretin on the in vitro maturation (IVM) of sheep oocytes and subsequent early embryonic development. Treatment with 5 μmol/L phloretin significantly improved the rates of oocyte maturation, cleavage, and blastocyst formation compared to the control group. This treatment also significantly increased intracellular glutathione (GSH) levels and mitochondrial membrane potential (ΔΨm), while reducing reactive oxygen species (ROS) levels. Furthermore, the treatment up-regulated the expression of key antioxidant genes (CAT, SOD2, GPX3) and the follicular development factor gene BMP15. Similarly, supplementing the early embryo culture medium with 5 μmol/L phloretin elevated GSH levels and ΔΨm, and reduced ROS levels in morulae. It also up-regulated the expression of the antioxidant genes CAT, GPX3, and SOD2. Moreover, the treatment enhanced the expression of development-related genes (P53 and OCT4) and significantly decreased the pro-apoptotic Bax/Bcl-2 ratio. In conclusion, phloretin enhances the efficiency of sheep oocyte IVM and early embryonic development by bolstering antioxidant defenses, inhibiting apoptosis, and promoting development. These findings provide a foundation for optimizing in vitro embryo production (IVP) protocols in sheep.