This research aimed to determine the level of practices of sustainability initiatives and challenges encountered by the woodcarving industry in Paete, Laguna. The researcher used the descriptive correlational approach and collected data using a formal instrument. The data was collected randomly from 153 respondents of registered business owners, active woodcarvers, and the Local Government Unit employees who play a major role in the woodcarving sector in the area. For statistical treatment, the four-point Likert Scale, simple mean, ANOVA, and Pearson Correlation (Pearson?s r) were used. The results revealed that sustainable initiatives in terms of economic, social, and environmental dimensions are being practiced to sustain the woodcarving industry in Paete, Laguna. It was found out that there is no significant difference in the assessment of the three groups of respondents in terms of economic and environmental dimensions but the aspect of the social dimension. The local industry believes that the problem in wood supply is rarely being encountered as compared to the challenges in the aspects of human capital, financial, market, technological advancement, cooperative management and governance, and public awareness. Thus, it shows that the level of practice of economic, social, and environmental initiatives has a direct relationship with the level of challenges encountered by the industry. Further, this paper attempts to contribute to the sustainability of the woodcarving business in the locality.