Higher education therefore plays a very important role in promoting eco-innovation for sustainable development and care for the environment. This review looks at how universities can foster the adoption and diffusion of eco-innovation through integration into the curriculum, research and development, skill development, and awareness. Universities are increasingly embedding sustainability principles into interdisciplinary curricula that would equip students with knowledge and skills to tackle complex environmental challenges. Additionally, institutions of higher learning serve as centers of R&D, where sustainable technologies and business models are developed with industrial partners. Notwithstanding all the efforts mentioned above, difficulties persist due to resistance, commercialization pressures, and general lack of funds for research. Universities contribute to the development in students of technical and leadership abilities that would be required in the application of eco-innovative solutions in various industries. Besides, voluntary education initiatives and grassroots programs are very important in bringing about awareness, behavioral change, and eco-friendly practices within the community, although scaling up remains an issue. The review emphasizes public–private partnerships and monitoring frameworks for overcoming these barriers to make education in eco-innovation effective and impactful. In turn, higher education can contribute to accelerating eco-innovation diffusion and the transition to sustainability by promoting collaborative efforts across sectors and levels of education. It thereby contributes to long-term environmental and social welfare. The findings underlined that a step toward scaling up eco-innovation in order to meet global environmental challenges requires an integrated approach to education through both formal institutions and voluntary initiatives.