Climatic variability is a global threat and its first and foremost impact is at household level. Tharparkar District faced extreme drought in 2014 which was considered as socio-economic drought as it caused serious negative impacts on livelihood sources of households. As majority of the rural masses rely upon livestock and cropping as their major source of income, households faced loss and damage in their financial assets. This research examines the loss and damage from latest drought that hit Tharparkar in 2014. A household survey questionnaire was developed along with Focused Group Discussions with the farming communities of villages to collect qualitative and quantitative responses from 20 villages of Tharparkar District. A sample of 384 households were randomly selected from the villages for the purpose. The data was collected for both, drought year (2014) and normal year (2016) in order to compare and capture the true picture of loss and damage due to drought. Satellite images were also censored to get the vegetation cover (Normalized Difference Vegetative Index) in both, drought and normal year. We found that the respondents never witnessed such extreme drought before in their life. According to 384 households surveyed, above 5000 animals were died in drought year including: sheep, goats, cattle, and camels. Average monetary loss per household per year in shape of animals died in drought year was 78426 Rupees, whereas average monetary damage per household per year in shape of total medication cost on animals was 5073 rupees. Almost 94% of the respondents reported that their crops were failed and almost 92% reported that their crop seeds were destroyed in 2014 and thus got no income from cropping that year. Whereas in normal year (2016), no such massive destruction was witnessed. The average loss per households in shape of cultivation cost in drought year was 65943 Rupees. Main coping strategies opted by the households against drought were: water storage techniques, migration, selling property, seeking private loans, and solar panels. Coping strategies of the households were not sufficient enough to tackle the negative impacts of drought, although all the households adopted coping strategies to fight against the drought. It was concluded that such droughts firstly affect the water demand, causing low vegetation for human and animals eventually affecting the food availability for households and feed for livestock. This scenario put the households in low resilience group, as their income is disturbed because of the climate stressor. The authorities should compensate the households for their loss and damage. Supervisor:- Dr. Aneel Salman