Abstract:Half of Bosnia and Herzegovina's (BH) population lives in rural areas. Agricultural production is a backbone of the rural economy and generates significant economic value for the country. BH is highly vulnerable to climate change, which poses a significant development challenge given the climate-sensitivity of the agricultural sector, the share of agriculture in the total economy, the number of people employed in the sector, and the closely related socio-economic issues of food security. BH has experienced serious incidences of extreme weather events over the past two decades, causing severe economic losses. Based on available data and currently available climate projections, exposure to threats from climate change will continue to increase. The review paper presents the current state of the BH agricultural sector and the impact of potential climate change on agricultural systems. It proposes policy options to optimize opportunities and mitigate consequences of possible climate change in the agricultural sector. Development of policy and research capacity should include harmonisation and centralisation of domestic agricultural policies, carrying out a vulnerability assessment and strengthening the public and private extension systems. Further technological development should include improvements in weather and climate information systems, crop development, irrigation and water management.