This study explores the experiences of batik craftsmen regarding capacity transformation during the COVID-19 pandemic and the challenges of batik craftsmen to industry 4.0. A case study is defined as a research approach. Data were collected through observations and interviews with well-known batik owners (medium level) in Kulon Progo, Yogyakarta. The capacity transformation that they have carried out has become a recommendation for batik craftsmen at the micro and small levels. The data were analyzed thematically with the help of NVivo through the stages of open coding, axial coding, and generic coding. The findings of this study resulted in the concept of transformation of batik craftsmen influenced by the motivation by the owner, shifting motifs and motif innovation according to the needs, production processes and technology involvement, marketing strategies and marketing or digital marketing evaluations. The batik sector at the small and micro levels needs to pay attention to the transformation aspects of medium-level batik craftsmen.