Ethiopia has the largest livestock number in Africa. Nevertheless, the productivity of this sector faces susceptibility to the effects of climate change and associated risks. Therefore, it is imperative to conduct further research and gather data to gain a deeper understanding of these impacts. This understanding will facilitate the design of effective adaptation and mitigation measures, allowing Ethiopia to effectively respond to the challenges posed by climate change and variability. The primary aim of this article is to provide a review of the impacts of climate change on livestock productivity and summarize adaptation strategies employed by small-scale farmers in Ethiopia. The study highlights an increasing trend in the intensity and frequency of drought occurrences in the country, particularly in pastoralist and agro-pastoralist regions. These trends exacerbate climate-related issues such as limited access to rainfall and water, reduced availability and quality of animal feed, heightened risks of animal diseases, and increased heat stress, resulting in diminished livestock performance. Consequently, collaboration on adaptation programs among stakeholders is crucial to bolster the traditional coping mechanisms of pastoralists and agro-pastoralists in response to the adverse effects of climate change. Additionally, comprehensive research is needed to identify and select camel and goat breeds specifically suited for drought-prone areas, serving particular purposes.