This paper explores vulnerability and adaptive capacity of rural communities in Southern Laos, where households are highly dependent on climate-sensitive natural resources and vulnerable to seasonal weather fluctuations. The speed and magnitude of climate-induced changes may seriously challenge their ability to adapt. Participatory group discussions and 271 household surveys in three villages highlight the current level of vulnerability and adaptive capacity towards climatic variability and risks. This paper visualizes three dimensions of the vulnerability framework at two levels using the Community Climate Vulnerability Index and household climate vulnerability cube. Results show that not only poor households are most at risk from climate change challenges, but also those better-off households highly dependent on specialized agricultural production are locally exposed to climate change risks. The majority of vulnerable households are characterized by low adaptive capacity. Floods and drought regularly put the poor under stress, which has led to various coping mechanisms; but capability of applying long-term adaptive strategies remains low among all households. The outcome of the participatory consultation underlines local community preference for an integrated approach to mainstream climate change adaptation into community natural resource management and livelihood improvement that may lead to better adaptive capacity building.