The independent and synergic impacts of climatic change and capitalist expansion may render pastoral social-ecological systems extinct. Climatic change compromises rangelands, while economic development fosters conversion of pastoral land into territories for capitalist expansion. Pastoralists’ institutions regulate decision-making to socio-environmental change and shape adaptive responses, enabling mobile livestock rearing for using multiple grazing areas, and households’ diverse income sources. These institutions are characterized by flexibility, such as mixed individual-collective water and land tenure regimes. However, capitalist-led reduction of land-based resources, the push for privatization and commodification of land and livestock hinder flexibility, and undermine pastoralists’ institutions for decision-making; ultimately creating challenges for pastoralists’ adaptive capacity. Research on the compound effects of the expanding global economy and climate change on pastoral social-ecological systems is needed to inform efforts constraining unregulated capitalist expansion, and policies for water and land security. Research, practice, and policies will improve pastoral social-ecological systems adaptability and resilience.