Sisal fibre is obtained from the leaves of the plant Agave americana which has been the leading raw material foragricultural twine because of its strength, durability, ability to stretch, affinity for certain dyestuffs and resistance to deteriorationin saltwater. In present days, the importance of their traditional use is diminishing with competition from synthetic filaments.The present study is focussed on extraction, spinnability and value addition to sisal fibre. The sisal fibre (BAS 1) wasextracted by traditional retting method and Raspador machine and utilized for production of yarn and felts. The fibre wassubjected to different spinning methods viz., conventional hand spinning method, Medleri charaka and Coco coir spinningmachine. Among these methods, Medleri charaka was found to be good with respect to yarn quality and production rate. Aspinner could spin 2-3 kg of yarn per day almost similar to the results obtained with Coco coir spinning machine, where as intraditional method, spinner could spin 1-2 kg of yarn with better quality based on the skill and expertise in spinning. The sisaltwine with 2 ply yarn was coloured with natural colorant viz., Annato, Acasia nilotica pods and marigold and was used forproduction of different value added handicrafts through simple hand knotting and weaving techniques viz., fruit bowls, tablemats, pen stand, bags, wall hangings, tea coasters and coil evening bags. The cost of production of these products ranged from` 60 to ` 500 depending upon the size, workmanship and labour charge. Novel sisal handcrafts could provide livelihoodsecurity among the rural artisans and sustain the traditional craft. These products being organic and eco-friendly have hugeexport potential.