This comprehensive study examines the dynamic relationship between traditional Naga jewelry-making practices and contemporary design innovation in the context of globalization and evolving consumer consciousness. Through mixed-methods research involving 30 respondents; artisans, designers, cultural practitioners, and consumers, this study explores the balance between cultural preservation and creative evolution. The findings reveal that integrating ancestral techniques with modern design does not dilute authenticity but reflects living traditions’ adaptability. Results show a strong market preference for authentic, ethically produced Naga jewelry, with consumers willing to pay 40–60% premiums for culturally grounded designs. Mechanisms supporting sustainable preservation and innovation include intergenerational knowledge transmission, ethical production, community entrepreneurship, and market access strategies. The study contributes to global scholarship on indigenous heritage preservation while offering practical guidance for artisans, policymakers, and cultural institutions committed to strengthening Naga jewelry traditions.