Sago is a local commodity with significant economic value and considerable potential to improve community welfare, particularly in rural and peri-urban areas. The existence of sago processing enterprises not only serves as a source of livelihood but also contributes to the socio-economic development of local communities. This study aims to analyze the role of sago processing enterprises in improving the socio-economic conditions of the community and to identify the factors influencing and constraining these enterprises in Jaya Village, Telluwanua District, Palopo City. This research employed a descriptive qualitative approach. Informants were selected using purposive and snowball sampling techniques. Data were collected through observation, interviews, and documentation and analyzed using the interactive model of Miles and Huberman. The findings indicate that sago processing enterprises contribute to job creation, increased household income, support for educational and healthcare needs, and improved ownership of productive assets. However, the development of these enterprises is constrained by limited raw materials, labor shortages, fuel availability, capital limitations, and inadequate production machinery. AbstrakSagu merupakan salah satu komoditas lokal yang memiliki nilai ekonomi penting serta berpotensi mendukung kesejahteraan masyarakat di wilayah pedesaan maupun pinggiran kota. Keberadaan usaha pengolahan sagu tidak hanya berfungsi sebagai sumber mata pencaharian, tetapi juga berkontribusi terhadap peningkatan kondisi sosial ekonomi masyarakat. Penelitian ini bertujuan untuk menganalisis peran usaha pengolahan sagu terhadap kondisi sosial ekonomi masyarakat serta mengidentifikasi faktor-faktor yang mempengaruhi dan menghambat usaha tersebut di Kelurahan Jaya, Kecamatan Telluwanua, Kota Palopo. Penelitian menggunakan metode deskriptif dengan pendekatan kualitatif. Informan penelitian ditentukan melalui teknik purposive sampling dan snowball sampling. Data dikumpulkan melalui observasi, wawancara, dan dokumentasi, kemudian dianalisis menggunakan model interaktif Miles dan Huberman. Hasil penelitian menunjukkan bahwa usaha pengolahan sagu berperan dalam menciptakan lapangan kerja, meningkatkan pendapatan, mendukung pendidikan dan kesehatan keluarga, serta meningkatkan kepemilikan aset produktif. Adapun faktor penghambat usaha meliputi keterbatasan bahan baku, tenaga kerja, bahan bakar, modal, dan mesin produksi.