Smallholder livestock farming is a crucial component of African economies, particularly south of the Sahara, sustaining millions of farmers and bolstering food security continent‐wide. Our study investigates into the effects of climate change on smallholder livestock farmers in northern Ethiopia's Raya Alamata district, investigating how farmers are adapting to evolving conditions. A field survey encompassing 177 households within three rural communities, coupled with statistical analysis, revealed that droughts strike once every three seasons, causing water and forage shortages, rangeland deterioration and a surge in livestock diseases and deaths. In seasons marked by dryness and heat, the incidence of livestock illness increased markedly, and daily milk yield per cow plummeted from 4 to 1.66 litres. In response, local farmers have transitioned from open grazing to stall‐feeding, heavily dependent on costly market‐bought feeds. Other significant adaptive measures include providing shelter, bathing livestock during heatwaves and practicing transhumance. To enhance resilience to these issues, we advocate for improved environmental conservation, better access to climate data and resources, better animal health care, and subsidized and readily available feed. Our research underscores the profound adversities confronting smallholder livestock farmers in northern Ethiopia due to climate change, implications that extend to food security and the economic equilibrium of the area and beyond.