This study aims to explore the current application of innovation concepts in the development of creative economy-oriented handicraft products by entrepreneurs in Nakhon Si Thammarat Province and to investigate approaches for utilizing innovation to enhance the development of Yan Lipao (Lygodium japonicum) handicraft products within the creative economy framework. The research employs a qualitative methodology, gathering data from 25 informants, including 15 Yan Lipao handicraft entrepreneurs in Nakhon Si Thammarat, 4 suppliers of Yan Lipao raw materials, 3 representatives from the Nakhon Si Thammarat Provincial Industry Office, and 3 representatives from the Community Development Office in Mueang District, Nakhon Si Thammarat. Data were collected through in-depth interviews and analyzed using content analysis. The findings reveal that the development of Yan Lipao handicraft products within the creative economy emphasizes the critical role of human resources, particularly the skills and expertise of artisans in producing unique and valuable products. Knowledge transfer among artisans facilitates both skill advancement and the preservation of craftsmanship within the community. Despite challenges such as a lack of interest among younger generations and limited adoption of advanced technologies, the integration of innovative approaches, such as product development and online marketing, offers opportunities to expand markets domestically and internationally without compromising the distinctiveness of the craft. Striking a balance between innovation and traditional values is key to building a sustainable and competitive business in the digital age.