This chapter examines the economic and social impacts of geographical indications (GIs), with a focus on their role in strengthening rural economies, preserving traditional knowledge and supporting community resilience. The aim of this study is to contribute to the advancement of scientific research on geographical indications by outlining the geographical distribution of registered GIs and providing a general assessment of the impact of GIs on sustainable local development (SLD). The analysis covers factors such as employment, income diversification, market access and tourism promotion, all of which positively influence the development of local small and medium enterprises (SMEs), contribute to broader regional growth, and strengthen regional identity. The chapter is theoretical in nature and is based on a literature review, the graphical modelling and the case study method. The findings indicate that GIs can lead to increased added value, support small-scale producers, and foster social cohesion by encouraging cooperation and community engagement. It is established that possessing GI status is also associated with various challenges and constraints encountered by producers. Future policy efforts should prioritize the removal of barriers to participation and the promotion of GIs as key drivers of SLD.