The modern aviation ecosystem relies heavily on connected sensor networks to ensure flight safety, where the malfunction of a single sensor could have dramatic consequences. In this safety-critical environment, the combination of blockchain technology along with intelligent fault management can lead to autonomous and verifiable maintenance in aircraft systems. The proposed approach employs a dual-layer self-healing IoT architecture that combines predictive fault maintenance and real-time anomaly detection to ensure continuous operation under failure conditions. The proactive layer anticipates sensor degradation, while the reactive layer autonomously senses and responds to faults in real-time through the activation of redundant backup sensors. Subsequently, a synthetic avionics testbed in three critical phases of all flights—takeoff, cruise, and landing evaluates the proposed framework’s ability to ensure continuity in data logging without human interaction. The blockchain-enabled system utilizing a smart contract enables decentralized and tamper-evident logging of all fault incidents and recovery events providing an important audit trail for regulatory compliance, as well as, integration for investigating incidents. The proposed Blockchain-Enabled Self-Healing IoT Framework will provide all automated fault management of aircraft sensor networks. The integration of predictive analytics, autonomous self-healing, and blockchain-based transparency provides a substantial increase in the modern aviation ecosystem as a reliable and accountable customer experience.