This report illustrates the methodology developed within the Hephaestus project to research and promote craft ecosystem management and heritage preservation in Europe through policymaking. It does so by outlining the complex historical evolution of craft, as both a concept and a practice, and discussing the implications on the relationship between craft and other sectors. It then describes the state-of-the-art research on craft policy and addresses existing policy gaps, by considering current European policies on craft. Additionally, it presents the emerging insights from the fieldwork activities conducted within the Hephaestus project, including relevant themes for policy interventions. Finally, it presents the methodological guidelines that will inform historical analysis and participatory activities for the development of policy interventions.