This article examines the theoretical and methodological foundations for ensuring the sustainable development of small and mediumsized enterprises (SMEs) within the context of a green economy. The relevance of integrating environmental, economic, and social sustainability principles into SME development is substantiated. The study applies a systematic approach, comparative analysis, and institutional methodology to explore mechanisms for improving SME sustainability. The research identifies key factors influencing sustainable SME development, including innovation, digitalization, ecological responsibility, and state support. Thefindings highlight the importance of implementing green technologies,  improving regulatory frameworks, and strengthening financial mechanisms to enhance the long-term sustainability of SMEs. The article proposes a methodological framework for supporting SMEs in adapting to green economy requirements and achieving sustainable growth.