ABSTRACTS This study examines the opportunity and challenges of livelihood diversification strategy in face of climate variability with particular reference toShinile District in Somali Region. This focuses on assessing the factors affected livelihood diversification strategies in study area. The studyemployed both quantitative and qualitative methods of researchentailing questionnaire, key informant interviews,focus group discussions and observation, and literature review as methods of data collection. The study revealed that limited access toskills developmentmarkets and transport infrastructure weaken the efficacy of nonfarm livelihoods to adapt livelihood diversification strategy.Key recommendations are that government, NGOs and communities must work in tandem to increase livelihood options for livelihood diversification strategies. Suggested strategies include increasing access to micro finance, vocational skills training and other support services paying attention to gender considerations. Areas requiring further investigation which emanated from the study include pastoralist communities and how climate variability has affected households` livelihood diversification. Keywords:- Livelihood, Diversification strategy, Climate variability, Shinile District