Climate change is the major threat and big challenge to mankind. The change in climate not only affects the crops sector, but livestock sector is also affected by the climate change. In Pakistan, the most of research is undertaken regarding impact of climate change on crops sector and little attention has been paid to examine its impact on livestock sector. Therefore, the main objective of this research is to study the impact of climate change as well as farmers’ membership of the projects [Special Program on Food Security (SPFS) and Crop Maximization Program (CMP)] on milk yield in rural Pakistan. Study uses household survey data for 322 farmers who were involved in crop as well as livestock production activities in the project area. The results are suggestive that precipitation has a non-linear (U shaped) relationship with milk yield. Similarly, temperature also is related to milk yield in similar fashion (U shaped relationship). The variables like value of milking animal, use of concentrates, use of catalysts, and green fodder acreage per animal (adult units) have significant and positive impact on milk yield. The number of lactation months is found adversely related to milk yield. Age and education of head household, and credit availability to farmers turned out to be important determinants of project membership status of the farmers. The results are indicative that farmers’ participation in the project had insignificants effect on milk yield. Supervisor:- Dr. Muhammad Iqbal