PurposeThe study seeks to analyze the influence of sensory experience on perceived environmental sustainability and word-of-mouth (WOM) of tourists and residents. The study also tests the moderation effect of satisfaction on the relationship between perceived environmental sustainability and WOM.Design/methodology/approachThe study was conducted in Sikkim, a state in the northeastern part of India, which is regarded as the world's first organic state. The study was done in two phases. In the first phase, the data were collected from the tourists. And in the second phase, data were collected from the residents. A structured questionnaire was distributed to 700 tourists and residents in Sikkim. Out of these only 484 responses were considered for the study. Multivariate analyses were done using SPSS software and packages like Process Macro, and Amos to test the hypotheses.FindingsThe findings of the study indicated that sensory experience significantly influences perceived environmental sustainability and WOM. The study model fit with GFI = 0.955, CFI = 0.946 NFI = 0.929 and RMSEA = 0.07. The findings also indicate that satisfaction moderates the relation between sensory experience and word-of-mouth with a p value = 0.018.Research limitations/implicationsThe study was conducted in Sikkim and it used a convenience sampling method. Therefore, the study cannot be generalized.Practical implicationsAn emphasis on building an organic brand image can positively impact the local community. A study of this kind will encourage the community to work toward sustainable development.Originality/valueThe study is unique as it explores the evaluation of destination environmental sustainability. And it is one of the first to test the impact of satisfaction in the relationship between the independent and dependent variables in the context of the tourism experience.