This research objective is to explore the potential of experience economics to drive sustainable tourism development in Melo Village, Labuan Bajo, Indonesia. Kampung Melo, known for its vibrant cultural heritage and picturesque landscapes, offers a unique opportunity to integrate the principles of experience economics, emphasizing value creation through memorable and immersive visitor experiences. The travel experience itself is a unique experience, which includes an emotional component. The four dimensions of the experience economy are education, esthetics, entertainment, and escapism. This study examines how these experiential aspects can contribute to sustainable tourism practices. The research method utilizes a qualitative approach, with interviews with local stakeholders to assess their experiences and perceptions. Findings suggest that by enhancing cultural performances, traditional practices, and eco-friendly tourism activities, Melo Village can leverage its unique assets to attract responsible tourists while ensuring long-term benefits for the local community. The study provides recommendations on harnessing experience-based tourism as a pathway to sustainability, fostering economic growth and cultural preservation.