The paper explores the state and potential of the development of traditional and artistic crafts in the city of Šibenik. The importance of processing this topic is related to the fact that the Republic of Croatia has adopted the recommendations of the UNESCO Convention on the Protection of Intangible Cultural Heritage and stipulated the procedure for awarding the certificate and the sign of traditional or artistic trades based on the Ordinance on Tradition and Art Crafts (No. 121/2007). The bodies responsible for the implementation of this procedure are the Department and the Commission for Traditional and Artistic Crafts at the Croatian Chamber of Trades and Crafts. Co-financing scheme for traditional and art crafts has also been implemented by the Ministry of Economy, Labor and Entrepreneurship. The research has shown that the possibility of protecting traditional and artistic trades has not been used in the area of Šibenik, despite the fact that the city abounds with a very rare and valuable craft heritage. This paper presents the activities in Šibenik, which need to be awarded by a certificate and a sign of traditional or artistic trades, and proposals for the development of new traditional crafts based on historical and cultural heritage of Šibenik.