**Sustainable Development through Eco-Innovation: A Focus on Small and Medium Enterprises in Colombia****Introduction*** Eco-innovation is gaining traction as a transformative approach for sustainable development, emphasizing both economic and sustainability objectives.* This study examines the impact of eco-innovation on the economic, social, and environmental performance of small and medium enterprises (SMEs) in Colombia.* SMEs in developing countries face unique challenges and opportunities regarding eco-innovation adoption and impact, which this study explores.**Theoretical Framework*** Social and economic performance encompasses aspects such as profitability, quality, and job satisfaction, contributing to overall organizational success.* Environmental performance involves implementing sustainable practices that minimize environmental impact and conserve resources.* Eco-innovation, guided by the concept of sustainable development, aims to enhance environmental performance while driving economic growth and social well-being.**Research Methodology*** Structural equation modeling (SEM) was employed to analyze data from 568 SMEs collected through an electronic survey.* The SEM approach enabled the examination of the interconnections between eco-innovation, environmental performance, and social-economic outcomes.* Hypothesis testing and confirmatory factor analysis were utilized to assess the validity and reliability of the research model.**Results*** Eco-innovation positively influences social and economic performance, indicating its role as a catalyst for sustainable growth.* A strong correlation exists between environmental performance and social and economic performance, highlighting the interconnected nature of sustainability dimensions.* Eco-innovation fosters improved resource efficiency, reduced waste, and enhanced environmental performance, showcasing its positive influence on ecological sustainability.**Discussion*** Eco-innovation contributes to societal benefits through job creation, community development, and improved stakeholder trust.* The adoption of eco-friendly products and services caters to growing market demand for sustainable solutions, opening up revenue streams for eco-innovative SMEs.* Eco-innovation promotes resource optimization, reducing production costs and enhancing competitiveness while minimizing environmental footprint.**Theoretical Implications*** The study reinforces the resource-based view (RBV) by demonstrating how eco-innovation serves as a strategic asset for gaining competitive advantage.* It extends stakeholder theory by highlighting the importance of addressing societal and environmental concerns for sustainable business practices.**Practical Implications*** SMEs can leverage eco-innovation to improve profitability, reduce environmental impact, and drive social well-being.* Governments and organizations should support eco-innovation initiatives through incentives and capacity-building programs for SMEs.**Limitations*** The use of convenience sampling introduces potential selection bias due to the intentional selection of participants involved in innovation management.* Self-reported survey data may be subject to response bias, affecting the validity of the findings. The applicability of the results to other contexts or countries may be limited due to socio-economic and institutional variations.**Conclusion*** Eco-innovation holds immense potential for sustainable development in Colombia, particularly for SMEs.* Its positive impact on environmental, social, and economic performance aligns with the triple bottom line (TBL) framework.* The study provides valuable insights for policymakers, businesses, and stakeholders on harnessing eco-innovation as a driver of sustainable growth and societal well-being.