Indigenous and local communities (ILCs) are the most impacted by climate change, as they face a combination of environmental and socio-economic challenges. However, ILCs hold extensive, complex, and rich knowledge and deep-rooted understandings of climate and environmental change that can inform climate change adaptation (CCA) strategies. Through a literature review, the study investigates the effectiveness of Indigenous knowledge and CCA. This helped to critically and systematically interrogate the adaptive measures. Using case studies of India, Nepal, and Sri Lanka, this study specifically examines the ILCs can partner with authorities, lead and co-learn in resilience building at local and regional levels. Firstly, through literature review, we understand the dominant adaptation strategies employed across the region and how they vary in effectiveness. Secondly, through the knowledge co-production approach, we mapped (1) Indigenous and traditional practices and (2) the major actions and roles to be taken up by various levels of institutions for the case study areas with high vulnerability. The adaptation strategies range from tangible to intangible practices/knowledge systems, which are grouped as social, physical, environmental, institutional, and cultural. Research findings from the preliminary surveys of the case study areas from the Southeast Asia region indicate that indigenous applied community knowledge, such as microclimate adaptation strategies, seasonal livelihood resource mapping, and environmental stress management, are highly effective at the local level. This approach will not only support adaptive transformation in response to climate change events but also strengthen community cohesion by promoting the integration of indigenous, local, and long-practiced strategies by communities into current and future climate action frameworks. The study advocates an innovative three step process ensuring participatory, locally grounded knowledge co-production approach to climate resilience that supports livelihoods in vulnerable regions.