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This study assessed the adaptive capacity of smallholder cocoa farmers to address the adverse effects of climate variability in the Adansi South District of the Ashanti Region, Ghana. Specifically, the study sought to (i) assess the perception of the smallholder cocoa farmers to climate variability; (ii) determine the perceived effects of climate variability on cocoa production in the district; and; (iii) evaluate the adaptive capacity of the smallholder cocoa farmers to manage climate risks. The study used questionnaire surveys with 150 smallholder cocoa farmers, key informant interviews, and focus group discussions in three selected communities (Afiaso, Tonkoase, and Amudurase). A variety of capital assets (social, financial, human, physical, and natural) were utilized to conceptualize smallholder cocoa farmers’ adaptive capacity. Results showed that the smallholder cocoa farmers reported changes in the onset and duration of rains, rising temperatures, and increasing windstorms in the selected communities. The farmers perceived increased incidence of drought and cocoa failure, the prevalence of diseases and pest invasion, and decreased farmer income as the key adverse effects on their cocoa production. Further, findings also revealed that cumulatively, all the selected communities in Adansi South District had a moderate adaptive capacity (0.531). It is recommended that appropriate policies aimed at enhancing the adaptive capacity of smallholder cocoa farmers must be formulated by policymakers to minimize their vulnerabilities to climate risks.