Climate change has become a serious environmental, social and economic threat particularly to natural ecosystems, biodiversity, and livelihood of agricultural and forest fringe communities. Climate change is becoming a key driver in agriculture and forest management, but its complexity and magnitude threaten the sustainability. Agriculture along with forestry can play an important role in climate change adaptation, through diversified land-use practices, livelihoods and sources of income. Sustainable agroforestry has a tremendous potential to serve as a tool in adapting climate change, protecting ecosystems and livelihoods, and creating a foundation for economic and social development. There are a range of adaptation options available to agroforestry with behavioral, institutional, technological and policy adjustments. This paper reviews the literature and discusses the adverse impacts of climate change on forest and agriculture; adaptation of agroforestry strategies to the climate changes; and policy implications required to promote the agroforestry adaptation in Sri Lanka. The adverse impacts of climate change on forest and agriculture are identified as: endangering the natural assets; prevalence of pests and diseases; crop failures and livestock deaths; high levels of food insecurity; and risk of migration into forest areas. Adaptations of agroforestry strategies are revealed in terms of: increase the tree cover outside forests; enhance of carbon stocks; conserve biodiversity; reduce risk and intensity of damage; maintain health and vitality; and scale up ‘multiple benefit’. Changes in legislation; awareness creation and capacity building; planning for climate-smart farm forest landscapes; uncertainty and risk management; ‘no-regret’ options; research and appropriate technology development; climate change adjustment programs; and building alliances are explained as the important policy implications. It could be concluded that the agroforestry have an important role in climate change adaptation enhancing resilience against climate impacts in farming systems with favorable policy environment.