The problem of climate variability is broadly studied currently from various angles thatrnemanate from seriousness of the problem. The most recent is application of satellite imagernthat is analyzed through Remote Sensing and GIS that flourished with the development ofrnEarth Observing satellites. The impact of Climate variability is high in Ethiopia, wherernfrequencies of extreme events are increasing. The Remote Sensing and GIS based analysis ofrnclimate vulnerability in Ethiopia is inevitable where insufficient amount of data is available.rnThe study area extends from Peak of Chilalo Mountain to lowlands of Fentalle with the totalrnarea of 7758.3 km2. The focuses on assessing the degree of climate variability, constructingrnclimate variability index, comparing and contrasting variations in parts of the Rift Valley withrnthat of adjacent highlands, integrating GIS and Remote sensing application in detectingrnclimate change and trend analysis, and finally preparing composite climate variability impactrnmap.. Daily river discharge data for Ketar and Keleta observed from 1980-2009 is alsornused to support the analysis. NASA s LANDSAT satellite of 1973, 1986, and 2009 with rowrn54 and 55 and path 168, have been used. Data analyzed from 22 meteorological stations foundrnin the study area since 1975-2009 indicates that temperature is getting increased by 0.37oC inrnthe rift valley and 0.48oC in highland and by 0.4oC in whole areas per 12 years and rain isrnconstant and shows insignificant rise. Rift valleys are suffering from climate variability thanrnadjacent highlands though rainfall variation is increasing in highlands than lowlands. In allrnthis work, various GIS and Remote Sensing softwares have been used. The resultant climaternvariability impact map along with the land use land cover can serve local planners andrnscientists as a primary source of information and for policy makers.rnKey words: Climate Vulnerability and Change, Vulnerability Index, Normalized Maps, LandrnUse