Purpose: A better understanding of the processes that shape households’ adaptation decisions is essential for developing pertinent policies locally, thereby enabling better adaptation across scales and multiple stakeholders. This paper aims to examine the determinants of household decisions to adapt, it is also possible to target factors that facilitate or constrain adaptation. This helps to identify key components of current adaptive capacity, which leads to important insights into households’ competence to adapt in the future. Design/methodology/approach: This paper takes a full-pledged approach examining factors and processes that shape households’ climate adaptation decision-making in rural Cambodia at three levels: adaptation status, adaptation intensity and choices of adaptation strategy. The three-stage analyses are materialized by applying the double hurdle model and multivariate probit model, which provides a potential way to systematically assess household adaptation decision-making in rural settings. Findings: Results show a high level of involvement in adaptation among local households who are facing multiple stressors including climatic risks. The findings suggest that perceived climate change influence households’ decisions in both adaptation status and intensity. Access to financial credit, farmland size, water availability and physical asset holdings are identified as key factors promoting the adoption of more adaptation measures. To facilitate adaptation, collective effort and support at community level is important in providing knowledge based climate information dissemination and early warning systems. Public sector support and development aid programs should focus on positive triggers for targeted community and household adaptation. Originality/value: The study, to the authors’ best knowledge, is one of the first studies to investigate the determinants of local adaptation decision-making systematically in Cambodia. It also provides a comprehensive approach to improve understanding of adaptation decision-making processes by exploring how various capital assets are associated with different stages of adaptation decisions. The findings contribute to policy implications enlightening adaptation planning at multi-scales with knowledge of key factors, which enhance local adaptive capacity to reduce climate change vulnerability.