This paper examines how climate change affects the livelihoods and natural resources of the Upper Mustang region in Nepal, with particular focus on climate change impacts on agriculture, livestock, rangeland, water resources and housing. The study's objectives were: to understand local people's perceptions of climate change; to assess changes in livelihood sources in the past 20 years; and to understand roofing problems. The study finds that the annual average temperature is increasing at the rate of 0.032, whereas the total yearly precipitation trend is decreasing at the rate of 1.81. Survey responses indicate that the majority of local people believe that the temperature is increasing; almost 82 per cent of the total number of respondents said that the amount of snowfall had drastically decreased in last 20 years. Climate change consequences identified in the study include increased diarrhoea, water scarcity, increased dryness in rangelands and leaching problems in mud roofed houses.