The main objectives of the study was to examine the major impacts of climate variability andrnchange on rural livelihood and identify household level responses under the existing socioeconomicrnand institutional environment. A study was conducted in three purposively selectedrnrural kebeles of Arba Minch Zuria Woreda of Gamo Gofa Zone, Southern Region. A total 0/60rnsample household (20 from each kebele) were selected from three kebeles. The necessw)' datarnwere generated from both primal)' and secondary sources. Household survey, key-informantrninterviews and personal observation were the main source 0/ primary data. Examination andrnreview of both published and unpublished reports were the major sources of secondary data.rnDescriptive statistics (such as means, percentages, minimum, and maximum), explanation ofrnobservation and narration 0/ interview results were used to analyze the collected data.rnThe findings of this study showed that most farmers and interviewee respondents in the study arearnare aware of and perceived that local climate is changing, in terms of increase in localrntemperature, increase in the frequency and severity of extreme weather events like drought andrnfloods, and above all, unpredictable and highly fluctuating precipitation patterns in theirrnlocality. In terms of impacts on rural livelihood, climate induced changes and related extremesrnwere identified to cause severe loss and damage on household assets, decline farm production,rnincreased indebtedness, outmigration, heavy dependency on food aid and vulnerability andrnreduced households' resilience against external shocks. The findings also indicated that forrnperceived change in climate elements and extreme events, households adopted different responsernmechanisms including change in the timing of farm operations, improved soil and waterrnconservation practices, integrated watershed and rangeland management measures, socialrnnetwork and capital, traditional/modern micro credit and saving institutions, intensification ofrnfertilizer and pesticides application and income diversification. However, these responses werernconstrained by many factors and unable to cope with increased vulnerability to future climaternchanges. Furthermore, poor socio-economic facilities and lack of policy-institutional supportrnundermined these efforts.rnTherefore, strengthening recent efforts of soil conservation, watershed and rangelandrnmanagement, investment on intensification of small-scale irrigation and other water harvestingrntechnologies, improving and expanding smallholder farmer's access to agriculturol credit ondrnfinance, market information, agricultural inputs and social services and capacity IJ//iUiug unrndisaster risk reduction and improving early warning systems and communications strategies arernhighly recommended.rnKey Words: Climate Change, Temperature, Rainfall, Adaptation, Livelihood, Livelihoodrnstrategies, Livelihood diversification.