Climate change is a global problem of this century but its impact is higher in low-income countries like Ethiopia, which has limited capacity to cope with the effects because the country’s economy is based on agriculture that directly affected by the impact of climate change. Subsequently, Ethiopia has been facing severe droughts at least twice per decade and several sever flood hazards. Most of the studies confirmed that the country’s annual temperature is increasing with about 0.37˚C whereas the rainfall has no clear trend and there is high variability with the rising frequency of floods and droughts. The climate changes projection indicated increasing in temperature by 2.2°C and 3.3°C in 2050 and 2090 respectively, but the rainfall trend is uncertain. The drought between 1900 and 2010 killed over 400,000 and exposed 54 million people for starvation and in 2004, 2005, 2008, 2016, and 2017; about 8, 6.3, 11.6, 18, and 8.5 million people respectively, need food aid. The flood in 2006 damaged crops on 1907 hectares and declined productivity by 20%; whereas about 15,600 livestock died and 199,902 people need humanitarian support. The heavy floods resulted in a loss of 1.5 billion tone topsoil which estimated to US$ 106 million. By 2050 climate change will reduce the Ethiopian GDP by 8-10% and 2.4 million people become food unsecured. To mitigate and adapt the impact of climate change the government has implemented the Climate-Resilient Green Economy Strategy since 2011 under which different development activities such as SWC, afforestation, and agroforestry practices, and fodder banks establishment in different localities. The country also implementing different international agreements as tool to fight climate change. Studies have shown that there are hazards of climate change therefore; the government should implement climate-smart practices in all sectors, access to relief funds, and precise early warning systems.