study explores how organizational behavior shapes the sustainability of cultural tourism through the case of the Banyuwangi Batik Festival (BBF), held annually since 2013 in East Java, Indonesia. Using a qualitative approach with interviews, observations, and secondary data, the research highlights the role of adaptive leadership, community participation, and cross-sector collaboration in ensuring the festival’s continuity. Findings show that BBF’s success is not solely rooted in Banyuwangi’s rich batik heritage but also in inclusive organizational practices that emphasize collaboration, effective communication, and shared ownership. The annual thematic innovation based on local batik motifs strengthens cultural identity while maintaining public interest and attracting wider markets. Active involvement of artisans, SMEs, and local communities fosters both cultural preservation and economic empowerment, positioning BBF as a driver of the local creative economy. Moreover, cross-stakeholder collaboration—among government, private sector, community, and media—ensures cultural, social, and economic benefits are well distributed. The study concludes that BBF contributes significantly to sustainable cultural tourism by integrating cultural continuity, economic opportunities, and social cohesion. These insights offer a replicable model for other regions seeking to develop cultural festivals as engines of sustainable tourism and local development.