With mounting pressure on environmental sustainability and climate action, green finance has been an important instrument to make the transition to a low-carbon economy. With its success, however, it depends heavily on public awareness and engagement, particularly from retail investors. The present study analyzes awareness, understanding, and perception of green finance among individual investors of Wardha city, a semi-urban region in India. Based on the sample of 222 respondents, descriptive statistics and one-sample t-tests are used to assess investors’ awareness of green finance concepts, ability to differentiate it from conventional finance, knowledge regarding green financial products, and perceived credibility of information sources. A moderate to high level of awareness and understanding is reflected in the findings, with statistically significant agreement on the definition and significance of green finance. While the respondents are becoming more product-aware of instruments like green bonds and ESG funds, the findings also reveal conceptual gaps and lack of access to credible information. The research underscores the imperative for focused education, better communication practices, and participatory financial literacy programs to beef up investor participation. More broadly, the study adds to the discourse on sustainable finance by highlighting the micro-level agency of individual investors and provides actionable insights for policymakers and financial institutions looking to extend the reach and influence of green finance programs.