This study was aimed at Smallholder farmers’ adaptation strategies to the effect of climate change and vulnerability in Gelana Woreda, Oromia region, Ethiopia. A total of 156 households were sampled using random sampling methods. A household questionnaire survey, focus group discussions, key informant interviews, and field observation was undertaken to collect primary data. Furthermore, 96.8% of the respondents perceived occurring of climate variability in the study area. The decline in crop and animal yield as well as productivity (30.8%), reduced water availability (21.8%), early and late rainfall (26.2%), the decline in soil fertility (12.2%), and human and animal disease (9%) were the major indicators of climate change and variability used by farmers. Crop disease (31%), livestock feed scarcity (24%), health problems and/or human disease (13%), soil erosion (8%), and loss of water point (8%) were the major climate-related effects in the study kebele. Seasonal migration, mixed farming, improved crop variety, feed management, soil terrace, tree planting, medication/vaccination, and rainwater harvesting is coping and adapting strategies of rural farmers to cope with climate variability. Nevertheless, putting those options into practice is constrained by lack of access to climate information (33%), lack of access to credit (25.6%), lack of water for irrigation (21.7%), and lack of enough farming land (11.4%. Therefore, the governments need to improve farmers’ access to credit services and climate information to minimize climate-related problems. Furthermore, strengthening the farmers’ adaptive capacity to climate change through awareness creation on climate change and variability is important.