Agricultural productivity in rural areas is severely affected by climate variability, and this elevates the vulnerability of rural households to food insecurity. This study examines the socio-economic vulnerability of farmers who are susceptible to droughts in the five agricultural-based regions of Gadaref, Eastern Sudan. A survey was carried out in 500 households to collect data on socio-economic and livelihood indicators. The data analyzed from these indicators were used to generate the three components of drought vulnerability: exposure, sensitivity and adaptive capacity. The analysis revealed that the regions deemed to be most vulnerable to both drought and climate variability were also projected to have the most vulnerable communities. The most exposed farming communities of Alfaw, Algadaref and Alfushqa regions showed a relatively low capacity for adaptation. Moreover, the study determined that vulnerability to drought and variability is associated with social and economic development in the Gadaref region. The results show that highly vulnerable regions are characterized by features such as low levels of productivity, elevated levels of financing, low crop diversity, agriculture as the primary income source and a low level of agricultural insurance. This research shows the importance of diversified livelihoods in building resilience against hazards linked to climate change.