Iranian handwoven carpets are recognized as green products due to their traditional production processes and the use of natural materials. In recent years, however, they have lost ground in the domestic market as consumers increasingly shift toward industrial, machine-made alternatives. Accordingly, the present study seeks to propose strategies for strengthening the market position of handwoven carpets in Fars Province by emphasizing their environmental benefits and competitive pricing. It further examines the extent to which raising consumer awareness of these attributes can influence their attitudes and purchasing behavior. This research adopted a descriptive-analytical methodology combining qualitative and quantitative approaches, with both library and field data collection. A total of 78 participants were selected in Shiraz through non-probability convenience sampling. Data were gathered using a structured questionnaire based on a five-point Likert scale and analyzed through ordinal scale techniques, including the calculation of means and standard deviations. The validity and reliability of the questionnaire were confirmed by experts and through Cronbach’s alpha. The findings reveal that environmental awareness positively affects consumers’ willingness to purchase handwoven carpets and can serve as a competitive advantage. Nevertheless, economic factors such as income level and purchasing conditions remain decisive in consumer choice. Accordingly, it is recommended that carpet unions and retailers enhance consumer trust and strengthen the market position of handmade carpets by employing advertising strategies, consumer education, and the use of the term “Iranian Green Carpet.” In addition, offering coarsely woven carpets such as Gabbehs from Fars Province at reasonable prices can facilitate purchases by middle-income groups and promote the development of the domestic market.