The promotion of sustainable development is a paramount objective in Latin America, and it is crucial to comprehend how companies can contribute to this goal. This study examines the relationship between green management, perceived barriers to sustainability, and innovation performance in Latin American SMEs. Using a structural equation modelling methodology based on a primary dataset of 5,716 managers from 18 Latin American countries, the study finds that green management positively relates to SMEs' the innovation performance of SMEs in Latin America. However, perceived barriers to sustainability partially mediate this positive relationship. Theoretical implications suggest that sustainable practices can lead to improved innovation performance, while practical implications highlight the importance of addressing perceived barriers to sustainability in order to fully realise these benefits. This study fills a gap in the literature by providing evidence of the positive impact of green management on innovation performance in Latin American SMEs and offers suggestions for future research avenues.