This study examines the effect of supply chain agility (SCA) and dynamic capability (DC) to sustainable business performance (SBP) through competitive advantage (CA) in European manufacturing companies in Indonesia. Sustainable business performance, especially concerning environmental issues and long-term value, has become a global concern. The study uses a quantitative approach with a cross-sectional survey, collecting data from 154 respondents, including supervisors, managers, and executives. The findings confirm that competitive advantage directly improves sustainable business performance by mediating the effects of supply chain agility and dynamic capabilities. The study highlights the importance of embedding sustainability into core business strategies for long-term growth, emphasizing an agile supply chain and the integration, development, and reorganization of competencies and resources to adapt to dynamic market conditions. Embracing sustainability principles and leveraging agile and dynamic supply chain capabilities can better position companies for long-term success in a fast-changing business world. However, the scope is limited to European firms in Indonesia, suggesting further research is needed to explore additional mediating variables and extend these findings to strategic decision-making in supply chain management.