This paper identifies and analyses climate change impacts, their cascading consequences and the livelihood implications of these impacts on smallholder agricultural communities of coastal Bangladesh. Six physically and socio-economically vulnerable communities of south-western coastal regions were studied. Primary data was collected through focus group discussions, a seasonal calendar, and historical transect analysis. Three orders of impacts of climate change on smallholder farmers are identified and described. The first order impacts involve increasing erosion of the capacity of local communities to mitigate vulnerability to climate change impacts. This situation led to the second order impacts, which significantly transformed the agricultural landscape and production patterns. The cumulative effects of the first and second order impacts sparked the third order impacts in the form of worsening community livelihood assets and conditions. The findings of this paper can contribute to the formulation of sustainable adaptation policies and programs to manage the vulnerability of local communities to climate change impacts in the country effectively.