Central Java has the potential for processed food based on local wisdom that is spread in various regions. Local food is food that is produced and developed by the potential and resources of the region and local culture. This study aims to determine the existing conditions of MSMEs processing local food products in terms of product development capabilities and marketing innovation capabilities. This research focuses on MSMEs processing local food products in Banyumas Regency, Grobogan, Sragen, Semarang, and Wonosobo. Samples were taken by purposive sampling with as many as 50 respondents. Descriptive analysis was used to describe the data collected using the three-box method. The results showed that most of the MSMEs are micro-businesses. Product development capability is considered high, indicated by an average index value of 83.55. Where the highest indicator value is believing that the products made are original to the market at 87.6. Marketing innovativeness is also high, with an average index value of 79. Where the highest indicator value is continuously making product improvements at 84.2. This article strengthens optimism that the development of local food products will continue to increase even though there are still many challenges and problems.