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Purpose This paper aims to understand the vulnerability of community livelihoods (human, social, financial, natural and physical assets) at a coastal environment in southern Mozambique, considering the level of exposure, sensitivity and adaptive capacity to climate change. Design/methodology/approach The study adopted the sustainable livelihoods approach. Data were collected through distribution of a structured questionnaire to 476 randomly selected households at the municipality of Inhambane. The questionnaire assessed all capital assets, covering 14 indicators and 43 sub-indicators of vulnerability, derived from published literature. Findings Results indicate that overall community vulnerability is largely derived from the vulnerability of physical, financial and social capitals, illustrated by declared food shortage, low nutrition levels, weak social networks, high level of biomass utilization and lack of financial resources due to unemployment. These aspects largely influence the noticed reduced adaptive capacity of surveyed households. Practical implications The study identified the need to improve the overall process of natural resources appropriation and utilization and the improvement of the governance capacity at the local targeting infrastructure, community structure and networks and capacity building that might enhance community livelihoods in changing scenarios. Originality/value The study is a contribution to the overall understanding of how livelihoods are exposed to climate change and variability in coastal settings.