There is a worldwide consensus that climate change is real, rapidly advancing and poses serious consequences to developing countries. In recent years, climate change has been a topic of discussion for government, policy makers, researchers and policy makers in Nepal. Although Nepal`s per capita green house gas emissions are negligible as compared to global emissions, the country is most affected by the negative consequences of climate change due to its diverse topography, fragile ecosystems and poverty. Nepal has experienced an average maximum annual temperature increase of 0.06°C and this rate of increase is high in the Himalayas than in the lowlands. The impacts of climate change are beginning to be felt in a number of ways, especially affecting water resources and thereby affect agricultural production. Nepal is predominately an agricultural country, and the change in the precipitation patterns and the onset of unpredictable monsoon even make the situation worst in the country. The most prominent impacts of climate change are landslides, flashfloods, drought, glacier lake outburst floods, retreat of glaciers, mass movement and debris flow. Thus, the continued rise in temperature and intense precipitation has substantial impacts on agricultural production and livelihoods of agrarian communities, especially in the hills and mountains because people on these regions rely on subsistence farming.