Craft production has long been one of the most important functional aspects of material culture amongst the ethnic groups of Laos. Some ethnic crafts carry a ritual function, but most are produced purely for domestic use.

Woodworking also features prominently amongst the ethnic minority handicrafts practiced in Laos. Renowned amongst the Austro-Asiatic Mon-Khmer groups are the carpenters of the Bahnaric-speaking Brau, Loven, Oy, Sedang, Sou and Talieng, the Katuic-speaking Nghe, Pa-co and Ta-oi and the Khmuic-speaking Khang and Xinh-mun. South Western Tay-Tai groups such as the Lao Isaan, Lu, Tai Khao and Yuan and highland communities such as the Hmong, the Yao and the Lolo-Burmish Akha, Kongsat, Phanna and Poussang are also known for their proficiency in this area.

With a few notable exceptions (inspired perhaps by their close proximity to Tai weavers), textile weaving and dyeing has largely died out amongst the Mon-Khmer ethnicities of Laos, but it remains alive and well amongst most Tai-speaking communities. Of particular note are the textiles of the Tai Chiangki, Tai Mene, Tai Meuy, Tai Pouark, Tai Sam, Tai Souei and Tai Then (Northern Tay-Tai); and the Lu, Kalom, Phuan, Tai Daeng, Tai Dam, Tai Gapong, Tai Khao, Tai Khoen, Tai Wang and Yuan (South Western Tay-Tai). Hmong, Yao and Sino-Tibetan ethnicities such as the Lolo-Burmish speaking Akha, Ha Nhi, Lolo and Phunoi are also proficient weavers and dyers, but they are perhaps best known for their sewing and embroidering skills, which have given rise to some of the most spectacular and colourful traditional costumes in the world.

In many parts of the country these colourful costumes are decorated with copious amounts of silver jewelry. Accordingly, silversmithing is still practised by a number of ethnic groups, predominantly by the Hmong, the Yao and Tibeto-Burman ethnicities such as the Akha, but also by some Mon-Khmer groups in the southern half of the country.