Ever since 2007, when the use of Sasa leaves as a natural resource in rural areas was newly recognized in the Tango Region, local residents have been providing commercial Sasa leaves to the Gion Festival and traditional food industries in Kyoto City. This study aimed to clarify the current state of preparation and distribution of Sasa leaves delivered to Kyoto City from the Tango Region, and to examine under which conditions related small businesses work, and what challenges they face. We interviewed leaf collectors in the Tango Region and processors in the Hanase Bessho and Kamigamo areas of Kyoto City, and observed and analyzed the collection, processing and distribution of Sasa leaves. Sasa leaves were mainly collected by two families in traditional satoyama woodlands where the use of natural resources for daily life had existed before. Users in Kyoto City highly appreciate Sasa leaves from these woodlands due to their high quality. Moreover, the traditional culture of Kyoto City requires a sufficient supply of Sasa leaves that have been carefully processed by hand. We concluded that in order to achieve a higher appreciation of added cultural-natural value and to promote small businesses related to the sustainable use of natural resources, the distribution system of Sasa leaves should be further developed, and urban-rural exchanges should be enhanced.