Currently, climate change and its impacts is a key issue in Ethiopia. Adaptation tornclimate change is making a system suitable to moderate the impact of climate change orrndeal with the consequence or to take advantage of new opportunities. In line with this, thernthesis has assessed the role of community managed watershed for climate variabilityrnadaptation in Adwa in the case of mariamshewito Watershed. To address the abovernobjective, the study uses both qualitative and quantitative data type. In order to collectrnvaluable information, semi structured questionnaire, focus group discussion, keyrninformant guide checklist, and observation tools from both primary and secondary datarnsources were applied. Similarly, different statistical methods such as percentage ofrnfrequencies, bar graphs, X 2 test, independent and paired sample T-Test and one wayrnANOVAs were used. The key finding of the thesis presents that due to differentrninterventions the livelihood of the community was diversified and enhanced especially;rnincome, soil fertility, crop productivity, forest, water and food availability becomernimproved. Even if it has some gaps in the process of implementation such as lack ofrnlinkage between sectors, lack of targeting problem to address the poor, the young andrnthe women, weak stakeholder linkage. It is concluded that the watershed managementrncan play a significant role to enhance householdâ€™s livelihood and cope with climaternchange impacts. Then, to fill the gap and go along the sustainability of the watershed, the study recommended based on the findings.rnKeywords: Climate Change, Climate variability Adaptation, Watershed Management,rnLivelihood Diversification Index (LDI), ANOVA, Paired and Independent T-Test and Chi-rnSquare Test.