HANDICRAFTS are one of the oldest and most prestigious human achievements due to their indigenous and unique nature, their independence of overseas production and the presence of creative, skilled and capable human resources, enormous capacity for entrepreneurship development in different parts of the country. This potential is deeply rich in Sistan and Balochestan province, but due to its reliance on traditional production and supply trends, it has not yet been applied properly. Therefore, the present study aimed to design and explain an entrepreneurial marketing model in the field of businesses related to handicraft in Sistan and Balochestan province. The research method was qualitative and through indepth interviews with the experts in this field based on Grounded Theory, which was carried out in three stages of: open, axial and selective coding. After 14 interviews with qualified experts, the necessary data were collected. Then, the continuous comparison process of open, selective, and axial coding data was done and 123 primary concepts were identified and categorized into 18 categories based on structural and content similarities. The final result of the analysis of the collected data was presented in the form of a basic grounded theory called the Entrepreneurial Marketing Model of HANDICRAFTS which include causal conditions (unique craftsmanship capacities, potential employment and entrepreneurship capacity, craftsmanship market dependence on creative approaches, skilled and creative manpower), pivotal phenomenon (sustainable livelihood of local craftsmen), Strategies (educational, technological, administrative-organizational and financial-budgetary), contextual conditions (educational factors, administrative structure, attitudinal factors), The interventionist conditions (low literacy of local craftsmen, poor technology infrastructure, weak administrative structure, geographical distribution, presence of Handicraft Dealers) and consequences (promotion of entrepreneurial capacities, promotion livelihood of local craftsmen, promotion of craftsmen motivation, preservation and strengthening of cultural identity).