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Climate variability acutely affects rural livelihoods and agricultural productivity, yet it is just one of many stresses that vulnerable rural households have to cope with. A livelihood approach is used to assess the potential role that seasonal climate forecasts might play in increasing adaptive capacity in response to climate variability, using Lesotho as a case study. An examination of the assets and strategies that rural households employ enables a holistic assessment of the impact seasonal forecasts could have on rural livelihoods. This research thereby bridges macro‐level variability with local‐level impacts and adaptation to provide insight into the dynamics of forecast use and impact among vulnerable groups.