Climate variability and change make agricultural sector a risky venture for smallholders’ farmers. This paper presents an assessment of smallholder farmers’ perceptions of climate variability and change, associated impacts on agricultural sector and the adaptive responses given in Fincha’a sub-basin of the Blue Nile River Basin of Ethiopia. We interviewed 380 head of households selected through systematic random sampling from eight Kebeles, two each from highland, midland, wetland, and lowland agro-ecosystems. Furthermore, focus group discussion and key informant interviews also performed to supplement and substantiate the quantitative data. Descriptive statistics used to summarize quantitative data and χ2 tests used to measure significance. The result revealed that increased temperature, frequency and severity of extreme weather events (drought and flood), and overall change in seasonality of rainfall over the last 20 years is a widely held perception. The associated impacts on agriculture include decline in length of growing period, the decreased and variability of water availability, increased crop damage by insects, pests, disease and weeds. In response, farmers practiced different adaptation measures like modification in crop and livestock production practices, and investment in land and water management activities at household and community level. The study also revealed the presence of multiple barriers that hindered the adoption of adaptation measures. To meet the impending challenges, situate by climate variability and change the adaptation measures implemented until now is not adequate. There is also extrication between farmers’ perceptions of climate variability and change, and actual adaptation level. Despite significant number of farmers’ perceived changes in temperature (about 93%) and rainfall (about 88%), the number of farmers adopted certain adaptation measures are below average. These necessitate the need for planned interventions to identify and support effective adaptation measures.