Although Sistan and Baluchestan Province is renowned for its handicrafts and has the potential to contribute significantly to the local economy, the industry has not yet met expectations. The downturn in demand in the handicraft market has not only eroded the incentive to enter this industry, but also made some people unemployed in this area and had other side effects, such as an increase in rural-to-city migration and the lack of production of some handicrafts. In this regard, the purpose of this study is to evaluate and rate barriers to market development in the handicraft cooperatives of this province. The present research is applied and quantitative and the required information has been extracted using questionnaires and interviews with activists and experts of this field in Sistan and Baluchestan province. A total of 40 questionnaires were collected in 2022 and analyzed using descriptive and inferential statistics. The results show that the limited holding of national or international exhibitions of handicrafts, investors' unwillingness to invest in handicrafts due to restrictive mechanisms and inadequate public propaganda to recognize the effects of handicrafts (especially tourists) are the most important barriers to the development of handicraft market are. The lack of design and use of integrated and scientific marketing systems for selling products by manufacturing companies, and the inability to sell handmade products directly by manufacturers, are also serious barriers to the lack of development of the province's handicraft market. However, the mismatch of provincial handicraft production with consumer tastes, diversity and product attractiveness is not a serious obstacle to the development of crafts markets.