Jepara's reputation as “The World Carving Centre” is suspected of experiencing an identity crisis, marked by the decline in export value during the covid19 pandemic, the absence of regeneration of wood craftsmen, and other problems. The Jepara people's belief in the power of carving as local wisdom that is preserved needs to be accompanied by social capital consisting of the government, industry players, entrepreneurs, and craftsmen. Social capital has a role in building Jepara's reputation as a City of Carving with a Public Relations approach. Therefore, this study implemented the Reputation Management Theory by applying a qualitative method with a case study approach. After observation and in-depth interviews were conducted with the government, furniture entrepreneurs, and artisans, it was found that social capital becomes a relational dimension to achieve the goals of regional public relations reputation. Public Relations is recognized as an organizational function that includes boundaries responsible for communication engagement with various stakeholders to facilitate social relations, co-creation, and communication. Community involvement and social life, such as building relationships, norms, and trust, enable them to manage their reputation effectively. Social capital is due to various elements, including trust, rules, and norms governing social action, social interaction, and network resources.