Proponents of many comparative models of craft specialization explain variability in the organization of production according to the nature of elite interest and economic demand. To this end, many propose a basic dichotomy between independent and attached specialization, whereby valued goods are produced for elites in controlled, nondomestic workshops. I examine new evidence for craft production in the prehispanic Andean polity of Tiwanaku (A. D. 500-1150). I outline expectations for these two forms of specialization and, based on ethnohistorical research in the Tiwanaku region, propose a third form, termed embedded specialization. I appraise primary evidence for the production of ceramic vessels at the site of Tiwanaku and the production of musical instruments at the nearby regional site of Lukurmata. Weighing expectations against evidence, I argue that in Tiwanaku centers many goods were produced by kin-based groups residing in large residential compounds. Skilled production served the overarching political economy and the demands of nonspecialists, but it was neither strictly independent of nor directly attached to elite interests. Craft was rooted in segmentary principles of sociopolitical order, and so was local but not wholly autonomous. On a comparative scale, I suggest that embedded production characterized some states emphasizing corporate strategies of political integration.