Significantly tied to China's 14th five-year plan, green innovation is a vital component of high-value growth. This study explores the impact of green innovation on the environmental sustainability of small and medium-sized companies (SMEs). The findings are based on the primary data collected from 453 Chinese SME employees via an online questionnaire survey. Structural equation modeling is utilized for data analysis purposes. Study results reveal that green innovation has a significant influence on marketing innovation and product innovation. Similarly, marketing innovation positively affects product innovation and environmental sustainability. Moreover, product innovation has a significant effect on environmental sustainability. The outcomes of this study imply that organizations in developing economies should prioritize green innovation elements in order to improve the environmental sustainability of SMEs. Study limitations and directions for future research are also discussed at the end of the study.