This study assesses climate exposure, sensitivity, and adaptive capacity among smallholder sheep farmers in the Drakensberg Grasslands of the Eastern Cape, South Africa. A mixed-methods approach combining focus group discussions (n = 89 participants) and key informant interviews was employed across three communal villages (Mabua, Tothaneng, and Madlangala). Results indicate that drought and heatwaves were the most frequently reported climate hazards (reported by 100% of participants), followed by frost, floods, and veld fires. Sensitivity was high, driven by severe feed shortages, increased disease prevalence, and high lamb mortality rates. Adaptive capacity varied across villages, with Madlangala demonstrating relatively higher resilience due to stronger social networks and farmer associations, while Tothaneng exhibited the lowest adaptive capacity. A composite vulnerability assessment revealed that Tothaneng had very high vulnerability (score = 4.4), compared to Mabua and Madlangala (high vulnerability). The findings highlight critical gaps in early warning systems, veterinary support, and infrastructure. This study contributes to climate adaptation literature by providing a comparative, place-based vulnerability assessment and identifying locally relevant adaptation strategies to support resilient smallholder livestock systems.