Despite the sector’s minor contribution (0.5%) to the Gross National Product, the fisheries sector in Cyprus is particularly important to the micro economy of coastal communities, offering direct and indirect employment and supporting small family businesses. Like any industry, the Cypriot fisheries sector faces its own challenges and opportunities. The current study aimed to identify the strengths, weaknesses, opportunities, and threats (SWOT) of the fisheries sector in Cyprus based on fishers’ knowledge and to provide strategic recommendations based on the sector’s identified needs. Following a participatory approach, a workshop with 30 small-scale fishers, six large pelagic longline fishers, and three scientists was conducted in November 2023. Fishers and scientists worked together to conduct the SWOT and the TOWS matrix (a reverse SWOT) analyses. Findings from the SWOT–TOWS analyses were used to develop strategic recommendations for the sector. Finally, using the Impact–Effort prioritisation method, the strategic recommendations were prioritised according to their potential impact on the sector and the effort required for their implementation. Based on the analyses, the study proposes 12 strategic recommendations that could significantly improve the sector’s overall performance and sustainability, which if applied will give a light of hope for the future of the Cypriot fisheries sector.