This study investigates the motivating factors influencing university students’ participation in the Green-Smart Campus initiative. The model examines variables from the student’s perspective, with a green-smart campus as the exogenous variable, encompassing energy efficiency sustainable buildings, sustainable transportation, waste management, and water management. Data was collected via an online questionnaire from 1,000 participants, undergraduate and graduate students at the University of Jordan, using random sampling. After excluding 56 incomplete responses, regression analysis was conducted on 745 valid responses to explore the relationships between variables. The research reveals a significant positive impact of the Green-Smart Campus initiative on student engagement and the university’s corporate image. Institutions promoting green practices, like recycling programs and eco-friendly transportation options, experienced higher student engagement levels. Engaged students felt connected to the institution and actively participated in sustainability-related activities, enhancing the university’s corporate image. Student engagement was found to mediate the relationship between the Green-Smart Campus initiative and the university’s corporate image. Engaged students played a crucial role in translating sustainability initiatives into an enhanced institutional reputation by sharing positive experiences and advocating for the institution.