In the South African handicraft sector, there is scarcely any significant research on the development of designs and product innovation. Extensive work has not been carried out by the producers to re-orient designs, colours and pattern of the product produced to suit the international standards. This study investigated the role of innovative design towards the sustainable development of handicraft industries through a case study of the Western Cape province of South Africa. The research focuses on the possibility of craft design for sustainable development of the handicraft products to aid in the economic development of the local community. The paper present results from a structured interview with producers, enablers, and buyers of handicraft products in the Western Cape province. The conclusion of the paper presents key findings from the structured interviews. These consist of the interventions for craft design for sustainable development and the handicraft product that has the highest potential for future development. Recommendations are provided for design approaches to the handicraft sector’s sustainable development, i.e. reproduction, modification and innovation.