Over the years, the standard Indian school curriculum has increasingly marginalised arts, crafts, and design education. This has led to the neglect of interdisciplinary approaches and creative problem-solving skills, which are essential not only in professional fields but also in everyday life. The influence of Western science and technology on design education, along with the shift from local to global perspectives, has also impacted the preservation of indigenous handcrafts, cultural diversity, traditional knowledge systems, identities, and natural resources in craft-rich communities. As a result, design programs in higher education institutions are forced to dedicate substantial time and resources to extensive foundation courses to bridge the gap between general and higher education. This paper proposes a contextualised approach to design education by integrating it with regional handcrafting and material culture. The authors develop and critically examine a contextual design education framework through a practice-based study that explores the feasibility, implementation, and effectiveness of activity-based teaching methods within formal school education. Developed through a two-year action research study with middle-school students in Assam, the proposed framework synthesises qualitative visual data, quantitative surveys, and test evaluations to formulate a sustainable, craft-based model for contextual design education. The proposed teaching framework emphasises how design sensibility and awareness can be developed in children through hands-on learning, utilising indigenous resources, cultural strengths, and the rich heritage of art and craft. Integrating the cultural environment with design education in schools is crucial for fostering a sustainable and meaningful future, particularly in countries like India, where schools may have limited infrastructure but are rich in regional crafts, and natural and cultural resources. The value of this study lies in its flexibility—this framework can be adapted and expanded as new approaches and changing contexts arise over time. The insights gained from this intervention aim to shape future practices and research in design education, contributing to the development of a contextual design curriculum in general education at schools.