The handloom industry of Sualkuchi is widely recognized for producing traditional Assamese textiles such as the mekhela chador and gamosa, which form a vital part of Assam’s cultural heritage and economic identity. Despite its historical and cultural importance, the sector is currently confronted with several challenges, including low remuneration for weavers, insufficient institutional support, scarcity of raw materials, limited innovation in product design, and intense competition from low-priced substitutes. Drawing on primary data collected from weavers and loom owners, the present study examines these challenges and evaluates the long-term sustainability of the industry. The findings indicate that without focused interventions—particularly in marketing, financial assistance, and diversification of products and designs—the Sualkuchi handloom industry may face serious difficulties in sustaining itself within an increasingly globalized economy.