Climate change represents a profound challenge to the lives and livelihoods of (agro)-pastoralists, who are acutely dependent on natural and nature-based resources. Adapting to climate change is becoming increasingly important for maintaining livelihoods and ensuring sustainable development. With this dissertation, I have investigated to what extent local communities have adapted to climate change and whether, and if so, how large-scale development projects have influenced their adaptation efforts and overall food security status. The analysis was based on the perspectives of agro-pastoralists, using the vivid example of the Nyangatom district as an increasingly popular tourist destination, and recently becoming a hotspot for large-scale agricultural investment in the lower Omo valley. The study takes the Salamago and Dassanech development projects as a showcase, each reflecting similar livelihood options and strategies. The research area presents a complicated situation as this part of the Ethiopian lowland area was subject to extremely rapid agricultural development (mainly for biofuel production) and dam construction, which, combined with climate change, left little room for sustainable use of pastoral resources. The lower Omo valley is just one example of many other pastoral areas in the country that face challenges from climate change, conflict, and changes in land use and land cover. In addition, the participation of local communities in decision-making about pastoral development was limited. Common development strategies previously applied were transforming pastoral livelihoods through sedentarization and promoting large-scale agriculture, such as state-sponsored sugarcane plantations, in pastoral lands. As a result, the livelihoods of the agro-pastoralists were threatened, and the pastoralists fell victim to the over-popularity of the area, leading to competition for land and water resources. The high demand for the use of natural resources was accompanied by differing views (and underlying interests) from stakeholders about what kind of developments were desired and how these resources should be used. The study provides an insight into pastoralism and agro-pastoralism as practiced in the lower Omo valley, i.e., an area where climate variability and change and conflict dynamics are seriously affecting the lives of pastoralists. The thesis contextualizes the importance of pastoral production in line with the ‘socio-ecological’ system in arid and semi-arid environments based on the Driver-Pressure-State-Impact-Response framework. The latter represents a chain of causal links starting with ‘driving forces’ through ‘pressures’ to ‘states’ and ‘impacts’ on ecosystems, human health, and functions, eventually leading to political ‘responses’. Data were collected through socio-economic surveys, community discussions, field observations, and local weather stations. The household surveys covered 424 randomly selected households from three sites: the Nyangatom (90%), Salamago (5%), and Dassanech (5%) districts. Both spatio-temporal analyses of remote sensing imagery and mobility models were used to investigate livestock mobility strategies and fodder supply-demand balances under conditions of climate change and land use and land cover change. Based on my research, I conclude that the Lower Omo Valley, especially the Nyangatom area, has development potential if the empowerment of pastoralists and the sustainable use of natural resources are facilitated, and if social institutions are respected and livelihood strategies can incorporate the risks of climate variability and change. Additional research is strongly recommended for a better understanding of the economic and ecosystem impacts associated with large-scale agriculture and for a better context-specific understanding of the significant impact of uncontrolled development activities in the valley. Stakeholder perceptions, social and cultural analysis, especially socio-ecological studies for the management of arid environments should receive much more attention. To this end, further studies could explore the question of how to create the best enabling environments for enhancing the socio-economic autonomy of agro-pastoralists, thereby recognizing their agency.