In the context of the revival of national culture, the problem of forming an artistic and aesthetic culture in future specialists of decorative arts, which causes radical changes in the direction of development of their artistic and creative abilities, becomes particularly relevant. The foundation for the development of artistic and creative abilities of higher education students is created by the activity of decorative and applied art. The main problem of our research is the development of a theoretical, methodological base and a methodological system for the development of artistic and creative abilities in future specialists of decorative arts during the study of folk crafts and crafts. The purpose of the research involves the substantiation of the scientific and methodological foundations of the development of artistic and creative abilities in future specialists of decorative arts during the study of folk crafts and crafts. To achieve it, theoretical methods were used: study, analysis and generalization of psychological-pedagogical, methodical, historical literature, monographic works, systematization of theoretical provisions, comparative analysis of dissertation works, study of curricula of disciplines of the professional training cycle of the artistic direction, study of reference literature, methodological manuals on decorative and applied art and folk crafts; empirical: study of the pedagogical experience of teaching students of pedagogical institutions of higher education the basics of decorative and applied art, observation of classroom and independent educational and creative work, scientific research and artistic and creative activities of students of education, conversations, questionnaires of teachers and students, study of products of artistic and creative activities of students of higher education in decorative and applied arts. The article theoretically substantiates the peculiarities and methods of development of artistic and creative abilities of students of higher education in decorative and applied arts. The main components of their artistic and creative abilities are determined: mental (productive and reproductive), practical and personal qualities. The main groups of artistic and creative abilities of students of higher education in decorative and applied art are defined: figurative and associative thinking, figurative and associative imagination, abilities in decorative and applied art. A comprehensive methodical system and organizational and pedagogical conditions for the development of artistic and creative abilities in decorative and applied art among students of higher education are proposed.