When it comes to the impact of climate change, Bhutan is one of the world’s most vulnerable countries. Although Bhutan has not contributed anything to cause climate change, it is facing the brunt of it impact. Bhutan’s climate is strongly influenced by the rugged mountainous terrain surrounding it as well as the Indian summer monsoon and changes in climate, which are increasing the vulnerability of vital economic sectors such as agriculture, forestry, and water resources. Climate change also impacts the country’s rich biodiversity and fragile community livelihoods through the increased risks of hazardous events such as glacier lake outburst floods, flash floods, droughts, and forest fires. This chapter analyses the impacts of climate change on agricultural livelihoods and associated internal human mobility. Despite being a small country, Bhutan has been doing its best to adapt to the impacts of climate change, but its topography and inadequate resources due to the small economy have been constraining Bhutan's developmental philosophy of Gross National Happiness and its achievement of its global sustainable development goals.