In January 1929, the Estonian Folk Art and Craft Union (EFACU) was founded, the aim of which was "... advancing handicraft at home, improving skills, promoting the idea and explaining its usefulness to a wider population... The Union began publishing the magazine of applied art, handicrafts and household culture titled Kodutööstus ('Domestic Economics') in 1938.

After the annexation of Estonia Soviets quickly banned all organisations that formed the backbone of Estonian civic society; the EFACU was disbanded as well.

It was re-established in 1992 in the newly independent state. Since 1992, a head of the Union has been Liivi Soova. The Union has re-established branches all over the country and by now has members in every county of Estonia. The Union cooperates with all main Estonian museums and art and craft schools.
The Union has its own Training Center, and the National Costume Advisory Board has also sprung to a new life.