The Upper Jambhira basin is a small river basin located in the northern part of Balasore district of Odisha is agriculturally developed. This part of the state is also known as the rice bowl of Odisha and most of the cultivable land is under rice cultivation. Rice cultivation needs an abundant water withdrawal. The analysis shows the basin experiences an increasing trend of annual and monsoonal rainfall with interannual and interdecadal variations. Though the basin experiences monsoon surplus rainfall, the annual surplus is very negligible, with water scarcity for many years. Monsoon rainfall variability is observed to be higher, leading to water scarcity for the crops. Total rainy days are decreasing, but rainfall intensity is increasing, which becomes unreliable for agriculture. This study suggests the conservation of monsoon rainfall for utilization in the scarcity period. It will help in the mitigation of the impact of climate change and the occurrence of extreme rainfall events in the study area.