This publication includes the findings of a participatory action research (PAR) carried out between 2010 and 2012 in two geographically and climatically different mountain watersheds in Mustang and Jumla districts in Nepal. The study was conducted under ICIMOD’s High Mountain Agribusiness and Livelihood Improvement (HIMALI) project. It aimed to identify communities’ key adaptive practices, with a focus on agribusiness in high mountain watersheds. Using a multi-stakeholder approach, the project documented people’s perceptions of climate risks and vulnerabilities, and provided climate-adaptive agribusiness and livelihood technology packages to farmers. The research findings clearly show that mountain agribusiness can be adapted and made financially rewarding by building the capacity of stakeholders, strengthening institutions, introducing technologies, and promoting climate smart investments. The learning from the project is expected to contribute in developing effective local watershed management plans to ensure the sustainability of agribusiness for the local communities.