The term Shetland refers to a breed of small horse originating from the Shetland Islands in Scotland. The term can also refer to two related breeds, the Shetland PONY and the Shetland Sheepdog, commonly known as the SHELTIE. The Shetland PONY is a small horse breed that stands at an average height of 10 hands (40 inches, 102 cm). The SHELTIE is a small herding dog that stands between 13 and 16 inches (33-41 cm) tall. Both breeds are known for their intelligence, strength, and agility.