This article examines farmers' livelihood responses and vulnerability to climate variability and other stressors in Morogoro, Tanzania, to understand their implications for adaptation to climate change by agricultural households in developing world more generally. In Morogoro, agricultural households have extended cultivation, intensified agriculture, diversified livelihoods and migrated to gain access to land, markets and employment as a response to climatic and other stressors. Some of these responses have depleted and degraded natural resources such as forest, soil and water resources, which will complicate their living with climate change in the future. This will be particularly problematic to vulnerable groups such as women, children and pastoralists who have limited access to employment, markets and public services. In this light, fair adaptation to climate change by agricultural households in Morogoro and elsewhere in developing countries requires several complementary responses. Adaptation efforts should involve effective governance of natural resources because they function as safety nets to vulnerable groups. In addition, strengthening of national markets by infrastructure investments and institutional reforms is needed to give incentives to intensification and diversification in agriculture. Market participation also demands enhancement of human capital by public programs on health, education and wellbeing. © 2008 Elsevier Ltd. All rights reserved.