Given the increasing environmental pressures and shifting consumption patterns in global markets, organizations are compelled to revise their operational strategies to align with sustainability requirements. In this regard, the present study aims to investigate the impact of green marketing practices on environmental innovation and the sustainable performance of Small and Medium-sized Enterprises (SMEs) in Kerman. Methodologically, this research is descriptive-correlational and applied in purpose, utilizing a standard questionnaire for data collection. The statistical population consists of employees and managers of SMEs in Kerman in 2025 (1404 SH), with a simple random sampling technique employed for selection. The reliability of the questionnaire was confirmed with a Cronbach's alpha of 0.890, and its validity was verified by expert panels and academic faculty. A total of 460 valid responses were collected via an online survey and subsequently analyzed using Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM). Data analysis was conducted using SPSS 24 and SmartPLS 3 software. The results indicate that green marketing practices have a positive and significant impact on environmental innovation and the overall performance of SMEs in Kerman. Furthermore, environmental innovation significantly influences the environmental, economic, and social performance of these enterprises. The findings suggest that adopting green marketing strategies fosters environmental innovation, which in turn leads to improvements in the multi-dimensional performance of companies. Therefore, investing in green marketing and eco-centric innovations can contribute to sustainable growth, enhanced economic efficiency, and increased corporate social responsibility. Based on these results, it is recommended that managers stabilize their competitive advantage by allocating optimal resources to green Research and Development (R&D) sectors.