Abstract : Handicraft SMEs provide employment to over six million people in India and it is also a major foreign exchange earner exporting to around hundred countries. This is a review paper which tries to explore the impact of digitalization on export potential of handicraft SMEs through analysis of recent literature. Over fifty papers have been studied sourced from Procedia, Emerald, ResearchGate, SSRN, Asian Development Bank, FICCI, EBSCO etc. to bring out the major challenges faced by handicraft SMEs. The study also puts forward the potential benefits that these SMEs can get from the process of digitalization. The work reviewed is related to various craft forms like wooden crafts, coir, handloom etc. and is from Indian states of Maharashtra, Uttar Pradesh, Delhi, Madhya Pradesh, Gujarat etc. There are also works from Malaysia, Indonesia, Bangladesh, China, Pakistan and Sri Lanka to give us an idea about other developing nations as. This work provides a base for further secondary as well primary studies related to the area of Handicraft SMEs and their relation with digitalization. This study concludes that there is little advancement in the benefits that SMEs derive from various government initiatives despite the giant contribution they make to the Indian economy. This paper as an analysis of vast literature provide scope for further quantitative, qualitative and empirical researches.