This study assesses the community vulnerability and existing adaptive strategies to the impact of climate change in semi-arid areas of Tanzania. The study was undertaken in Shinyanga rural district. The study methods included focus group discussions, key informant and household interviews. Findings from the study showed that the local communities are aware that the climate is changing, as characterized by variability in rainfall patterns and increasing temperature. Rainfall amounts have decreased and became more unpredictable, and drought prolonged. Temperatures have also increased. Consequently, there has been declining crop productivity and increasing food insecurity. Such situation has increased the vulnerability of local community livelihoods to the impacts of climate change. Different socio-economic groups of households (the well-off, intermediate and poor) have differently pursued multiple adaptation strategies, including growing of drought tolerant crops, increasing wetlands cultivation and diversification to non-farm activities, depending on their livelihood assets. The poor groups with limited livelihood assets were reported to be more vulnerable to impacts of climate change and more food insecure as compared to the well-off group, mainly due to their low adaptive capacity. The study concluded that livelihood diversification strategies, including integration of on-farm and nonfarm activities, are crucial to enhance adaptive capacity and ensure sustainable rural livelihood in a changing climate.