Climate variability and change pose a substantial threat to agricultural practices and livelihoods in the Punjab province of Pakistan, a region of agricultural significance in South Asia. In particular, farmers residing in vulnerable parts of Punjab will be affected by a combination of high exposure to the impacts of climate events, the innate sensitivity of agricultural systems, and constraints on farmers’ adaptive capacity. The situation requires closer engagement with vulnerable farming communities of Punjab to assess their vulnerability and build their capacity for adaptation actions. Through qualitative analysis of semi-structured interviews with farmers from four highly vulnerable districts of Punjab (Rajanpur, Muzaffargarh, Chakwal, Dera Ghazi Khan), we explored farmers’ perceptions of climate change, their adaptation strategies, and enablers and limitations on adaptation options imposed by the enabling environment. We found issues around water governance, knowledge exchange, and market arrangements for crops as key limitations to farmers’ local adaptation action in highly resource-constrained settings. Moreover, the results indicated the need to address equity issues for small-scale compared to large-scale farmers. Farmers valued their experience-based local knowledge and peer-to-peer sharing networks as pivotal resources in pursuit of their practice-based learning. The research findings highlighted the necessity of directed institutional assistance to empower adaptation by vulnerable small-scale farmers. This study emphasizes the critical significance of the enabling environment that facilitates vulnerable farmers to implement adaptation strategies, thereby promoting the adoption of Vulnerable-Smart Agriculture.