This ‘Inside story on climate compatible development’ by the Climate and Development Knowledge Network describes how Grenada, a highly climate-vulnerable small island developing state (SIDS), is using its Strategic Program for Climate Resilience (SPCR) to set the country on a path to mainstream climate resilient poverty reduction and sustainable development, through multilateral finance and technical support. The lessons and implications which have emerged from Grenada’s SPCR include: climate change responses need to be tailored according to country-specific contexts, for SIDS resilience should be the primary focus; a comprehensive approach is likely to work better than a piecemeal project-by-project approach; and the involvement of representatives from all stakeholder groups in the design and implementation of national programmes can increase the information base on which the programme draws.