This research aims to investigate the effect of green packaging on a sustainable environment. A double-layered complex conceptual model was developed, and the relationships between green packaging awareness (GPA), green packaging behavior (GPB), and environmental benefits were tested. A carefully crafted survey instrument was used in collecting data from 389 respondents from 41 villages in southern India. After checking the psychometric properties of the survey instrument using the LISREL package of structural equation modeling (SEM), the hypothesized relationships were tested using Hayes’s PROCESS macros. The results indicate (i) GPA and GPB are positively associated with environmental benefits and (ii) GPB mediates the relationship between GPA and environmental benefits. The findings also support the three-way interaction between GPA, green packaging initiatives (GPI), and environmental concern in enhancing GPB. The double-layered moderation tested in this research adds to the novelty of the study, thus making a unique contribution to the bourgeoning literature on sustainability.