Known for its great fishing opportunities, Sherman Reservoir State Recreation Area boasts a 2,845-acre lake surrounded by 4,721 land acres. Camping includes more than 300 primitive non-pad sites and 61 pad electrical sites. Other facilities include: picnic tables, shelters, water, dump station, modern restrooms, vault toilets, four boat ramps, fish cleaning stations, coin-operated showers and concession. Cabin rental and additional RV camping pads are available through a local concessionaire.

This is an area of mostly rolling prairie grasslands with woody growth along creeks, located 4 miles east and 1 mile north of Loup City, on Highway 92. It features several hiking trails through various types of habitat surrounding the 2548-acre lake.