For this deductive & cross-sectional study, the aim was to find out the impact of Green Supply Chain Management Practices (GSCP) and Environment on Performance of SMEs. A fully structured and self-administered questionnaire has been adopted and operationalized by online survey link having five demographical and thirty-one study variables items for data collection at primary level from 380 senior managers, directors, and owners. After coding, punching, and refining the data a number of statistical tools have been applied for analysis. Together with the mediating effect of environmental performance, all hypotheses are found to be supported. Historically, GSCM has been frequently attacked on the grounds that these expenditures will increase the cost burden and hence have a detrimental impact on firm performance. The “win–win” argument has been used by the majority of businesses recently to defend their investments in GSCM projects. By reducing their environmental expenses and increasing environmentally friendly operations, GSCM has become a significant new tactic for businesses looking to meet their profit and market share targets. In order to build commitment, long-term relationships, and trust, managers must collaborate with both other departments within the same organization and with other organizations. It is safe to say that businesses should also consider GSCMIP in business operations and the entire supply chain.