Globally, environmental issues impact every aspect of human activities and the concern for environmentally friendly products and services is increasing day by day. These growing shifts in consumer preferences toward environmental sustainability have become a prominent aspect in recent times. Therefore, the purpose of writing this chapter is to explore the environmental sustainability practices and their dimensions in Pakistani Small and Medium-Sized Enterprises (SMEs). Qualitative analysis, involving semi-structured interviews with thirty manufacturing SMEs, this study explores the challenges and initiatives undertaken by these businesses in addressing environmental concerns. The findings showed that SMEs in Pakistan struggle with issues such as the energy crisis, and air pollution. While some measures have been taken such as energy saving and limited water recycling, there is a general lack of comprehensive sustainability strategies among SMEs, particularly smaller businesses. The study underscores the importance of integrating environmental sustainability into SME practices for long-term viability and economic development. It advocates for collaborative efforts for policymakers, researchers, and practitioners to promote a culture of sustainability in Pakistani SMEs.