The main objectives of the study was to examine the major impacts of climate variability and change on rural livelihood and identify household level responses under the existing socioeconomic and institutional environment. A study was conducted in three purposively selected rural kebeles of Arba Minch Zuria Woreda of Gamo Gofa Zone, Southern Region. A total 0/60 sample household (20 from each kebele) were selected from three kebeles. The necessw)' data were generated from both primal)' and secondary sources. Household survey, key-informant interviews and personal observation were the main source 0/ primary data. Examination and review of both published and unpublished reports were the major sources of secondary data. Descriptive statistics (such as means, percentages, minimum, and maximum), explanation of observation and narration 0/ interview results were used to analyze the collected data. The findings of this study showed that most farmers and interviewee respondents in the study area are aware of and perceived that local climate is changing, in terms of increase in local temperature, increase in the frequency and severity of extreme weather events like drought and floods, and above all, unpredictable and highly fluctuating precipitation patterns in their locality. In terms of impacts on rural livelihood, climate induced changes and related extremes were identified to cause severe loss and damage on household assets, decline farm production, increased indebtedness, outmigration, heavy dependency on food aid and vulnerability and reduced households' resilience against external shocks. The findings also indicated that for perceived change in climate elements and extreme events, households adopted different response mechanisms including change in the timing of farm operations, improved soil and water conservation practices, integrated watershed and rangeland management measures, social network and capital, traditional/modern micro credit and saving institutions, intensification of fertilizer and pesticides application and income diversification. However, these responses were constrained by many factors and unable to cope with increased vulnerability to future climate changes. Furthermore, poor socio-economic facilities and lack of policy-institutional support undermined these efforts. Therefore, strengthening recent efforts of soil conservation, watershed and rangeland management, investment on intensification of small-scale irrigation and other water harvesting technologies, improving and expanding smallholder farmer's access to agriculturol credit ond finance, market information, agricultural inputs and social services and capacity IJ//iUiug un disaster risk reduction and improving early warning systems and communications strategies are highly recommended. Key Words: Climate Change, Temperature, Rainfall, Adaptation, Livelihood, Livelihood strategies, Livelihood diversification.