Green innovation has emerged as a critical strategy for enhancing business performance and market image. Its social impact within the SMEs sector is of significant interest. This study aimed at analyzing the literature to assess the social impact of green innovation within small and medium-sized enterprises (SMEs). The study employed library research to conduct an advanced search in the Scopus database, utilizing the keywords “green innovation” and “social impact” from 2006 to 2024, which yielded 741 articles, highlighting the rich vein of studies that have attempted to investigate issues around the social impacts of green innovation. We critically reviewed the articles and identified three primary social impacts of green innovation in SMEs; these include the creation of a healthy and comfortable working environment, improved environmental awareness, and enhanced productivity and performance. These findings imply that within the SMEs sector, green innovation fosters improved workplace conditions, fosters a culture of environmental responsibility, and drives operational efficiency. These variables are beneficial to both the employees and the firm in the long term. Therefore, the study emphasizes the importance of integrating green innovation practices into the SMEs business strategies and processes for both short-term and long-term positive social impact.