This study investigates the relationship between Green Human Resource Management (GHRM) and sustainable performance, focusing on the mediating role of green innovation and the moderating influence of transformational leadership. A cross-sectional study was conducted among Malaysian small and medium-sized enterprises (SMEs) to explore the interrelationships between GHRM, green process and product innovation, sustainability, and the role of sustainable leadership. The findings reveal a positive and significant relationship between GHRM practices and sustainability, encompassing environmental, economic, and social aspects. Management support for environmental initiatives is identified as a critical factor in enhancing the effectiveness and spread of green innovations. The study also highlights the critical role of transformative leadership in fostering sustainable practices, particularly the significant moderator role of responsible leadership in driving sustainable business practices. The research provides a roadmap for businesses, especially SMEs, to leverage GHRM as a strategic tool in their pursuit of sustainability. The study contributes to the growing field of sustainable human resource management by offering insights that are theoretically robust and practically relevant for organizations committed to sustainability.This study investigates the relationship between Green Human Resource Management (GHRM) and sustainable performance, focusing on the mediating role of green innovation and the moderating influence of transformational leadership. A cross-sectional study was conducted among Malaysian small and medium-sized enterprises (SMEs) to explore the interrelationships between GHRM, green process and product innovation, sustainability, and the role of sustainable leadership. The findings reveal a positive and significant relationship between GHRM practices and sustainability, encompassing environmental, economic, and social aspects. Management support for environmental initiatives is identified as a critical factor in enhancing the effectiveness and spread of green innovations. The study also highlights the critical role of transformative leadership in fostering sustainable practices, particularly the significant moderator role of responsible leadership in driving sustainable business practices. The research provides a roadmap for businesses, especially SMEs, to leverage GHRM as a strategic tool in their pursuit of sustainability. The study contributes to the growing field of sustainable human resource management by offering insights that are theoretically robust and practically relevant for organizations committed to sustainability.