This study examines the value chain of the pandan (Pandanus simplex Merr.) handicraft industry in Luisiana, Laguna, Philippines, highlighting both economic and environmental challenges that threaten its sustainability. Despite its deep cultural roots, the industry faces declining profitability, discouraging local stakeholders from investing in its preservation and sustainable management. The lack of economic incentives has contributed to deteriorating pandan tree health, a declining number of traditional weavers, and inefficient production system. Through interview with 73 local weavers and key informants from government and industry, the study assessed resource availability and market dynamics. Findings revealed that while pandan remains abundant, poor harvesting and limited access to quality raw materials weaken supply sustainability. The absence of technological innovations in processing further restricts industry growth. A cost and return analysis identified direct sales to retailers as the most profitable channel, yet logistical constraints and inconsistent demand undermine its viability. To address these challenges, the study proposes an integrated economic and environmental approach, including sustainable harvesting techniques, community-led reforestation, cooperative strengthening and policy development. Without intervention, the industry risks disappearing along with the valuable ecological and cultural knowledge associated with pandan weaving. This research provides a science-based framework for revitalizing the pandan industry while promoting conservation, offering insights that can be applied to other traditional handicraft sectors across the Philippines.