Drawing on evidence from in-depth interviews and a household survey, the paper provides evidence on the farmers’ challenges in production, marketing and prices as well as how farmers perceive and deal with climate change impacts on coffee production in the Fero-two Peasant Association (PA) of the Wensho district of the Sidama region in southern Ethiopia. This includes prolonged dry season, erratic and insufficient rainfall, too early and too late rains and temperature rise. Unexpected heavy rains and snow events as well as weather change-driven pests and diseases negatively affect not only the volume of coffee production and quality but also the prices. The effects of climate change risks add pressure on the existing challenges such as land shortage and fragmentation, declining soil fertility and weeds. Lack of participation in decision-making and corruption are additional challenges for the coffee growers. Although the farmers rely on multiple production-related adaptation responses, most of the deployed strategies to the changing environment are less effective and short-term. The paper concluded that policy interventions should better comprehend the local vulnerability to build resilience and to undertake sustainable agricultural practices for improving the farmers’ adaptive capacity to deal with the effects of climate change.