The community members of Lumbini are also ingenious craftsmen. The handicrafts of Lumbini include:

1. Flower and fruit baskets, tray and tea mats, kitchen table place mat, pen stand, paper tray, floor mat, bags- ladies, dry flower pots, Christmas accessories - bells, decorative items, jewellery boxes, key chain and small give away, cloths and dust bucket . These are made from natural fiber-based handicrafts made from the locally available banana fibre, elephant grass, muj (local name) grass.

2. Clay Sculpture of Pancha Buddha’s, Lord Buddha, Little Buddha, Mayadevi temple, Shakya muni made from the soil of Lumbini are available. The raw material used, the holy soil of Lumbini - birthplace of Lord Buddha, adds value to these items.

These natural fiber-based handicrafts are made by Terai women from Rupandehi villages namely Ama, Khudabagar, Lumbini Adarsha, Madhubani, Ekala and Tenuhawa. These women who are among the marginalized and disadvantaged group, are rich in their Terai culture and indigenous skills. Production of these handicrafts is part of their culture as they produce them to offer gifts to brides to take to their new home.

The handicrafts, relatively less expensive despite the immense effort that goes into the making, are popular among tourists. Tourists buy them as souvenirs for friends and relatives back home. The fact that they are made of natural and local raw materials adds to the value to these items. Buying these items and handicraft products, contributes to the livelihood of poor and disadvantaged women of community. The handicraft items are available at Mahilabar Bazaar and Visitors' Information Center, gift and accessory shops of Lumbini Development Trust (LTD).