The symbolic culture embodied in traditional crafts is an important aspect of national culture which reflects the uniqueness of a particular region as well as the people. This paper aims to identify various factors responsible for and act as the stimulants for preservation as well as sustainable development of traditional crafts and proposed an anthropological model for preservation of culture in symbolic form by analyzing traditional techniques and designs. Author argues that, the changes at socio-cultural level have great impact on economic activities and vice-versa, which can be act both stimulant as well as barrier for sustainable development of traditional crafts and consequently the cultural diversity. The study identified several key factors which responsible for sustainability of traditional craft heritage in developing countries like India. The handloom industry of the state Odisha is taken as case study for empirical reality where fieldwork is carried out. The research design followed ethnographic approach and various anthropological techniques are used for data collection.