The traditional craft sector plays an important role in terms of preserving the cultural heritage and the economy of the Kingdom of Bahrain. Yet, this sector faces many challenges in responding to the changes in consumers’ preferences and customers’ expectations for more sustainable and innovative products. This research aims to develop a practical framework of design management strategies to enhance sustainability and foster innovation within Bahrain’s traditional craft sector [1]. The study employs a mixed-methods approach, including qualitative interviews and quantitative surveys to assess the current state of the sector and identify key challenges and opportunities, and these proposed strategies emphasize the interconnection between sustainability and innovation. When it comes to the components of the framework, some are dedicated to sustainability practices such as sustainable production and distribution systems, while others focus on innovation solutions, including collaborative design and co-creation processes, as well as innovative product and service development. Additionally, capacity-building and knowledge-sharing initiatives bridge both areas, fostering a holistic approach to enhancing the traditional craft sector [2]. These design management strategies provide a practical and holistic approach for policymakers, industry associations, and craft enterprises to strengthen the long-term competitiveness and sustainability of Bahrain’s traditional craft sector. The findings hold valuable insights for other Gulf Cooperation Council (GCC) countries with vibrant traditional craft industries.