The study examined how local knowledge of climate change plays a role in adjusting to changing climate and how these beliefs may influence future decision making about how to go about adjusting to climate change at a local level. The study was conducted in west central Ethiopia at the edge of the Blue Nile. The current indigenous knowledge practiced by the local community in adopting the changing environmental conditions was discussed. Rural communities have local knowledge in areas such as weather and seasonal forecasting (44%), drought forecasting (20.9%), crop pest & disease (47%), and weed (99.7%) control methods to adapt to some of the climate change impacts. Not all households have the same levels and types of indigenous knowledge. Therefore, awareness creation and experience sharing among community members are important in increasing the application of indigenous knowledge for climate change adaptation.