This conceptual and exploratory study systematically investigates the socioeconomic development, livelihoods, and structural vulnerabilities in the lives of traditional handloom weavers across the state of Telangana, critically evaluating their contemporary challenges and long-term developmental prospects. Utilizing a nonempirical, qualitative, and exploratory research design, the methodology systematically synthesizes diverse peer-reviewed literature, official census reports, institutional government datasets, and current academic scholarship to construct a comprehensive, multi-dimensional conceptual framework. The core outcomes highlight deep-rooted systemic hurdles: severe fluctuations in raw material costs, low wage structures, high dependence on exploitative middleman networks, inadequate institutional credit avenues, poor marketing channels, and intense, uneven competition from modernized power-loom sectors. Conversely, critical growth prospects are identified within cooperative structural reforms, digital marketing integration, and state-supported micro-entrepreneurship models. Policy implications dictate an immediate paradigm shift away from passive, short-term welfare subsidies toward active, technology-driven capacity-building, direct-to-consumer e-commerce linkages, decentralized cluster-level infrastructure, and robust minimum wage protections. This study’s primary contribution is reframing the regional handloom cluster not as a declining legacy craft but as a self-sustaining, highly eco-friendly, decentralized green economic sector possessing massive livelihood potential. The theoretical novelty lies in directly linking regional weaving preservation and artisan empowerment to specific United Nations Sustainable Development Goals (SDGs), thereby establishing a scalable socio-ecological framework for traditional crafts. Finally, limitations stem from its nonempirical character; the total reliance on secondary literature prevents direct validation of current, grassroots behavioral changes and field-level economic shifts within Telangana’s diverse rural weaving households, indicating a critical need for future, primary, and targeted empirical field studies.