Abstract: Indigenous Knowledge Systems (IKS) are an important heritage that represents the long-standing experiences, traditional techniques and cultural values of human society of Sri Lanka. Sri Lankan rural communities have developed traditional production methods using natural resources to meet basic needs. The traditional pan craft industry reflects this indigenous knowledge and has a long history among rural communities in Sri Lanka’s North Central Province (NCP). The main objective of this research is to analyze the indigenous knowledge systems embedded in the traditional pan craft industry of Kunuragama village in the North Central Province from a social and historical perspective. This study employed a qualitative research approach. Primary data were collected through in-depth interviews and participatory observation involving artisans, elderly community members, and knowledge holders in the pan craft industry in Kunuragama village. Secondary data were gathered from literary sources, research books, and reports. The collected data were analyzed using thematic analysis. The findings of the research revealed that the pan craft industry is not only a simple economic activity, but also a complex local knowledge system linked to a good understanding of the environment, natural resource management, production skills and social relations. It was also revealed that there is knowledge based on experiences transmitted over many generations in the process of selecting, preparing, coloring and creating products. Accordingly, this research shows that the Kunuragama pan craft industry is a unique heritage linked to local cultural identity, rural lifestyle and environmental adaptation. Accordingly, it is confirmed that the traditional pan craft industry is an important field that reflects the indigenous knowledge systems, social history and cultural heritage of Sri Lanka.