Malur Karaga, a deeply rooted ritual tradition in Karnataka, embodies a rich continuum of history, mythology and community based knowledge systems. Historically associated with the worship of Draupadi from the Mahabharata tradition, Karaga is believed to have evolved through centuries as a sacred practice upheld by specific community custodians, where ritual performance, oral narratives and symbolic enactments preserve collective memory and cultural identity. Oral histories and local accounts indicate that the Malur Karaga tradition has been practiced continuously for several centuries commonly traced back over 300–500 years sustained through hereditary custodians and community-led transmission. The festival also attracts thousands and lakhs of devotees and participants, including visitors from neighbouring districts and other states, reflecting its expanding socio-cultural significance beyond the local context. In Malur, this tradition has retained its localized distinctiveness while adapting to changing socio-cultural dynamics, making it a compelling example of a living Indian Knowledge System (IKS). This study conceptualizes Malur Karaga as an integrated knowledge system operating at the intersection of community agency, ritual economy and cultural sustainability. Adopting a qualitative-dominant mixed-method approach with an ethnographic orientation, the research draws on primary data through in-depth interviews, participant observation and focus group discussions with ritual specialists, community members and local economic actors. It examines how historically embedded knowledge is transmitted across generations, how community institutions informally govern the festival and how ritual practices sustain localized economic networks. By situating Malur Karaga within sustainability and policy frameworks, it proposes pathways for safeguarding intangible cultural heritage while promoting community-led development, demonstrating how historically evolved traditions function as resilient and adaptive knowledge systems in contemporary society.