e_____________________ v ABSTRACT ABSTRACT Due to anthropogenic and natural factors, climate change and variability is real in Ethiopia. The study analyzed the vulnerability of farmers to climate variability in terms of adaptive capacity in Koga watershed. Livelihood vulnerability index framed within the IPCC vulnerability framework were used to analyze adaptive capacity of 263 household heads in the watershed. Data of rainfall and temperature were complemented from secondary sources. Besides farmer household heads difference in adaptive capacity to climate variability, there difference to perception and adaptation strategies to climate variability were analyzed. Farmers having better socio economic profile were better perceived climate variability problems and implemented adaptation strategies than farmers who had weak socio economic profiles. Woyina dega (midland) farmer household head respondents score highest adaptive capacity score (0.395), than the dega (highland) household head respondents with the adaptive capacity score of 0.298. So, the findings of this study had policy relevance in identifying source and forms of vulnerability. Therefore, narrowing livelihood gaps between dega and woyina dega agro ecology household heads by integrating rural development schemes is needed aimed in order to enhancing adaptive capacity to climate variability . Key words: Agro ecology, climate variability, vulnerability in terms of adaptive capacity