Climate change affects Nepal leaving smallholders with diverse challenges concerning their small, mixed farming system. Goats are an integral part of Nepalese smallholder farms providing income and nutritional security. Crossbreeding of local and exotic breeds is one solution to minimize negative climatic effects as crossbreds might be better adapted to new climatic conditions. The aim of this study was to assess current breeding strategies and the impact of crossbreeding at farm level within the context of climate change. In 31 semi-structured interviews with farmers from Pokhara, Nepal, quantitative and qualitative data was collected in 2014. Performance parameters of local and crossbred animals were estimated. Interviews with livestock experts completed the database. An analysis was conducted to assess if technical training had an impact on breeding and husbandry practices. Participating farmers own diverse farms with various agricultural activities. Goats are mainly used for meat production and manure is used for fertilizing crops. Technical training has a positive influence on selection of breeding bucks, inbreeding prevention, castration practice, feeding and husbandry practices. Farmers consider similar traits in local and crossbred goats, but consider physical characteristics of exotic breeds in the crossbreds. Some farmers value crossbred goats as possibility for adaption to climate change. Benefits of crossbreeding include higher income. Few farmers report challenges resulting from crossbreeding such as higher workload and higher need for veterinary treatment. Respondents stated that they want to continue crossbreeding in the future, introduce improved, exotic breeds, milk production and increase herd sizes.