Climate change-induced variability in rainfall patterns and temperature has caused significant losses to the agriculture sector in Pakistan. Crop diversification is recognized as an effective risk management strategy for farmers to cope with climate-related risks and is therefore a potentially sustainable community-based solution for enhancing community resilience to climate change. This chapter examines how past exposure to extreme weather events, risk attitude, and other community and farm characteristics affect the farmer’s decision of crop diversification. Using farm-level data from 480 farmers in Sindh province of Pakistan, the study examines the determinants of crop diversification decisions. The results show that previous exposure to flood or excessive rainfall in the community, farm size, and farmer’s risk attitude significantly affect crop diversification. Furthermore, location-specific factors account for differences in local climatic and agro-ecological conditions and significantly determine the extent of crop diversification.