The majority of households in Ethiopia depends on climate sensitive (rain-fed agriculture), which is the source of their livelihood and the basis for National Growth and Domestic Products. Climate change and variability make them the victims and calls for proper designing of adaptation strategies. The study was conducted at Konso district of Segen Zone in Southern Ethiopia. Geographically, the district is located at (50 15′ 0″ N – 50 45′ 15″N) and (370 3′ 0″E - 370 42′ 0″E). The overall objective of the study was to assess climate change and variability impacts on rural livelihood and adaptation strategies. A multi-stage sampling technique was used and 138 sample households were selected. Primary data were collected through field visits and interview; whereas secondary data were collected from the district agricultural offices and meteorological stations. A Statistical Analysis System, Statistical Package for Social Science version 23, Mann-Kendall trend test, t-test, chi-square test, Precipitation Concentration Index, Standard Anomaly and excel sheet were used for data analysis. Rainfall showed a positive trend, but, with little increment and inter-annual and seasonal variability. The annual maximum and minimum temperature revealed a positive and statistically increasing trend (P <0.001). Both Crop and livestock production had a positive correlation with the amount of rainfall (p≤0.001). The overall impact of climate change and variability as calculated in monetary terms for the year 2017 on the sample households were severe with loss of a huge amount of money. Farmers have used both adaptation and coping mechanisms to minimize the impact. However, there is a need to integrate methods of adaptation with the modern and environmental friendly technologies. Integration of early warning system with extension service, work in group and idea sharing, proper farm management and integrated system, income source diversification and bottom up capacity building with proper institutional arrangement and specific polices should be done. Key words: Climate change, Climate variability, Livelihood, Impact, Adaptation strategy, Perception