This research explores the impact of climate change on livelihood of the people in middle mountain region of Nepal. This study found increase in temperature by 0.02 Centrigrade and rainfall by 0.28 mm per year over thirty years. Majority of the people have perceived change in climatic condition; ecosystem function and biological system were consequences of climate change. This study found that climate change has been deteriorating the livelihood assets of the people. Most adverse impacts have been observed in natural, human, physical and financial capitals. People have experienced decrease in production of cereal crops due to prolonged drought, erratic monsoon rain, less winter rainfall, low water availability for irrigation and occurrence of new pests and diseases. People experienced frequency of vector-borne, water and food-borne diseases have increased in recent years. It was observed that local people were using indigenous knowledge, means and measures to minimize the adverse effects of climate change.