The 1969 Festival took place July 1-6 on the National Mall, between Madison Drive and Jefferson Drive and between 10th Street and 14th Street, south of the National Museum of History and Technology and the National Museum of Natural History. For the second time, a State was featured - in this case, the Commonwealth of Pennsylvania. Two themes were the focus of craft presentations: 1) sheep shearing and wool production and 2) corn culture. These thematic programs were complemented by presentations of basketry, toy-making, doll-making, and other crafts. Daytime and evening concerts presented a panorama of traditional music and dance.

The Division of Performing Arts, directed by James R. Morris, again organized the 1969 Festival. Ralph Rinzler was the Festival Director, assisted by Marian Hope.