This chapter examines the transition of handloom industry in Manipur from a traditional craft to a commercial enterprise. The chapter interrogates the social, cultural and political dynamics of sex segregation in the handloom sector in Manipur. Weaving as an occupation has characteristics which are highly consistent with typical female stereotypes in society at large, and the chapter examines the extent weaving undergoes feudalisation. The study has observed that women’s entrepreneurship in the handloom industry in Manipur is associated with the changing social and political structures and the expansion of market on the supply side and the attributes of culture of weaving on the demand side, bringing about some positive changes in the social, economic and political status of the women.