The majority of rural people in Ethiopia depend on climate-sensitive rain-fed agriculture, which is the source of their livelihood and the basis for national growth and domestic products. The adverse effects of climate change and variability forced them to design proper adaptation strategies. This study was conducted at Konso district in Southern Ethiopia. The objective of the study was to assess the impacts of climate change and variability on rural livelihoods and the existing adaptation strategies. A multi-stage sampling technique was used and 138 sample households were selected. Primary data were collected through field visit 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 and standard anomaly were used for data analysis. Accordingly, the results revealed that rainfall indicated a positive trend though with a little increment (0.1 mm/year) and inter-annual and seasonal variability. The annual maximum and minimum temperature revealed a positive and statistically significant increasing trend (p < 0.001). Both crop and livestock production have a positive correlation with the amount of rainfall at p ≤ 0.001 level of significance. The overall impact of climate change and variability as calculated in monetary terms for the year 2017 on the sample households was severe with loss of a huge amount of money. Farmers have used different adaptation mechanisms to minimize the adverse impacts of climate change and variability. However, there is a need to integrate methods of adaptation with the modern and environmental-friendly technologies.