The main thrust of the paper was to discuss the relationship between indigenous craft and tourism development using Ushafa pottery as the focus of inquiry. Adopting the qualitative approach to enquiry, the study sought to, among other things, study the processes of pottery making, ascertain the challenges which confront potters, and investigate the contributions of pottery to the development of Ushafa. Findings show that the processes of pottery production include collection of clay, breaking of clay into small particles, sun-drying and soaking of clay in water as well as sieving to produce fine clay. Other stages are kneading for plasticity, moulding, application of designs and finally, firing or baking of clay item. Pottery which leads tourism growth in Ushafa has made the following contributions such as improvement in local economy, provision of basic amenities and self-esteem among community members. Challenges of Tourism Development in Ushafa include the deplorable condition of the road leading to the clay mining area; the need for increased marketing outlets for pottery products, corruption and community poor hygiene.