The medicinal and aromatic plants sector in Egypt is considered one of the vital sources of economic and health wealth, as it contributes to enhancing biodiversity and providing job opportunities for many categories. This research aims to draw a map of the value system to clarify the governmental, research, and supportive bodies and the institutional framework of the medicinal and aromatic plants sector and to identify bottlenecks, needs, and problems along the value chain, in addition to providing a roadmap for developing the sector in Egypt and Fayoum Governorate, reaching the most important technological and administrative solutions to the sector's problems, and enhancing cooperation between the components of the innovation environment at the regional and national levels. The study used quantitative and qualitative analysis to design a descriptive analytical study of the value chain of medicinal and aromatic plants using the Sector Innovation System and the Regional Innovation System. The results revealed the existence of major weaknesses in the value chain, as a result of insufficient coordination between the stakeholders and ineffective institutional frameworks, in addition to shortcomings in relation to the production stage (agriculture and its inputs), and what is related to the operations stage (collection, preparation, processing), and the export stage, and other bottlenecks that need to be addressed, whether the points that require immediate intervention, or in the medium term, or in the long term, and thus require many interventions, including short-term ones such as agricultural extension services, contract farming, and state-supported inputs, other medium-term measures such as controlling the supply of unlicensed pesticides, addressing water scarcity, and investing in crop resistance, in addition to long-term interventions to regulate the market, trade information centers, export incentives, and adopting modern technologies. By addressing these challenges, the medicinal and aromatic plants sector will flourish, creating economic and social benefits for the local community and enhancing Egypt and Fayoum Governorate's position as a leading centre in this industry.