Bishoftu Town homegarden agrobiodiversity was studied to highlight homegarden frequency, types, plant species and their functional groups, indigenous knowledge and climate change impacts. The research was conducted during September 2013 to March 2014. A total of 300 randomly selected households were included in the preliminary survey of homgardens. Ethnobotanical data were collected from purposively selected 30 homegardens using observation, semi-structured interviews; and markets were surveyed for homegarden products. Data were analyzed using preference, direct matrix, pairwise rankings and descriptive statistics. The results indicated that 270(90%) of the households were practicing homegardening. Of these, 43, 40, 12 and 5% were front, mixed, side and backyards, respectively. The homegarden plant composition gave 115 species belonging to 94 genera and 51 families that were identified and classified into 15 functional groups. Among them, 50, 37, 21 and 7 plants were herbs, trees, shrub and climbers, respectively. Further analysis indicated that 75 and 25% were cultivated and wild; 95.7 and 4.3% were non-endemic and endemic species. Ruta chalenpensis that was found in all the 30 homegardens (100%) was the most frequent species followed by Rosmarinus officinalis (83.33%). Carica papaya and Persea americana received the first and second ranks from among the food crops. The community in Bishoftu understood changes in temperature and shifting in rainfall patterns easier than other climate change indicators like genetic erosion. Use of family labour and organic production method made homegardens low cost and self-sustaining systems. Generally, homegardens in the study area contain diverse plant species playing crucial roles for domestic food and nutrition, medicines, income sources, cultural and social development and environmental regulation. The study results presented useful information that could be applied by horticulturalists, ethnobotanists, urban development policy makers/planners, anthropologists, pharmacologists, ecologists, biologists, environmentalists, and extension workers.rnKey words/phrases: Climate change, homegarden, indigenous knowledge, plant species diversity, use groups