<p>This study establishes a structured framework for sustainable lean implementation in the handmade carpet industry of the Bhadohi region. The goal is to streamline operations, decrease waste, and promote productivity. Using the Delphi method, 25 initial barriers are identified, which are further refined to 17 barriers through expert consultation and reliability analysis. A structured questionnaire with fuzzy linguistic variables is administered to 56 respondents that include industry owners/managers, academic experts, and employees, to evaluate interrelationships among barriers. Fuzzy Interpretive Structural Modeling (FISM) and Fuzzy Matrice d’Impacts Croisés-Multiplication Appliquée à un Classement analyses establish a hierarchical model and map the driving and dependence powers. The Best–Worst Method (BWM) gives weights to categories and barriers, which led to global priority rankings. The Results reveal that strategic and leadership factors account for over 40% of total influence, underscoring its pivotal role. The integrated FISM–BWM framework provides a sustainability-oriented roadmap for lean adoption in traditional manufacturing clusters, bridging a notable research gap in artisanal industry transformation.</p>