The agricultural sector is one of the most important economic sectors due to extensive interaction with the environment. Climate change is one of the prevailing environmental problems in the world and has gained universal discourse in recent time because its effects are multi-faceted. It affects agricultural production and consequently affects the price of its products, supply, demand, profit and welfare of the farmers. Therefore, this study attempts to examine the perceived effect of climate change on the profitability of water melon production among farmers in Ibarapa East local government, Oyo State, Nigeria Using a well-structured questionnaire this study employed a multistage sampling procedures to sample 120 water melon farmers. The objectives were analyzed using descriptive statistics budgetary and gross margin analysis and ordinary lease squr regression. Descriptive analysis showed that 55.40% of the respondents were male, 58.30% of the respondents were married and nearly all the farmers (91.61%) had access to credit in the study area. Majority of the farmers were aware of the climate change in the study area while majority of the farmers sourced their information via mobile phones and radio. Majority of the farmers’ perceived sunshine as the climate change parameter that influences water melon production while 29%, 14% and 8% of the farmers perceived rainfall, temperature and wind respectively. Perceived Climate change index and farm size had negative effect on profitability while age and years of farming experience have positive effect on the profitability of water melon profitability in the study area. Since the result revealed that high perceived effect of climate change reduce farmer’s profit, therefore, water melon farmers should be encouraged and be trained on how to diversify their farming activities in order to increase their profit as well as their income, also farmers must be encouraged to be able to get more access to the use of mobile phones since majority were identified to receive climate change information and awareness through mobile phones. This will not only increase water melon profitability but also enhance rural economy development in Nigeria.