Traditional craft has been relegated to the margins in modern culture, being perceived as out step with technological, economic and societal progress. However, emergent research is rediscovering the nature of craft and its potential for contributing to design practice in conjunction with developments in science and technology. Through the analyses of craft and sustainability, strong connections are revealed as well as some incompatibilities. The contribution of this paper is to a) map a systemic view of craft and b) establish a theoretical understanding of the relationship between craft and a holistic understanding of sustainability. Drawing on recent research that proposes three areas of leverage for sustainability, we argue that craft, as a system of making, knowing and being, has significant potential to contribute actively and tangibly to the transitional conditions, thereby serving as an agency for sustainable transformation.