Climate change remains a significant threat to farm households, especially in developing countries. It exacerbates their vulnerability to food insecurity by reducing agricultural productivity and raising agricultural production costs. Adoption of climate smart-agricultural (CSA) practices is a promising alternative to build resilient farm households. In this study, we assessed the impacts of adopting CSA practices on climate resilience and vulnerability among farm households in Bale-Eco Region, Ethiopia. A power calculation was used to determine the sample size, and 404 farm households were randomly selected to collect data using structured questionnaire. We estimated household climate resilience index using categorical principal component analysis, and vulnerability index using vulnerability as expected poverty approach. Endogenous switching regression model, which is conditional on the adoption of multiple CSA practices and used to control selection bias and unobserved heterogeneity, was used to assess the impacts of CSA practices on household climate resilience and vulnerability. We employed counterfactual approaches to assess the impacts. The results show that the average treatment effects for most CSA practices are statistically significant and positive for resilience, but negative for vulnerability. This provides empirical support for interventions in climate-smart agriculture, which can help farm households build resilience and reduce vulnerability. We, therefore, suggest that agricultural policies should encourage the adoption of CSA practices and provide incentive packages to farm households that promote this.