The integration of green microfinance into rural development offers a transformative pathway for achieving sustainability while addressing pressing socioeconomic challenges. This study explores the synergistic relationship between green microfinance, rural development, and environmental conservation. By providing financial support for eco-friendly and sustainable projects, green microfinance empowers rural communities to adopt renewable energy solutions, sustainable agriculture practices, and resource-efficient technologies. This research investigates the dual impact of green microfinance on economic growth and environmental stewardship through case studies, data analysis, and qualitative insights from rural beneficiaries. It highlights the role of microfinance institutions (MFIs) in promoting climate-resilient practices, reducing poverty, and enhancing the livelihoods of marginalized populations. The findings reveal that green microfinance fosters grassroots innovation, increases community resilience, and aligns with global Sustainable Development Goals (SDGs). This research contributes to the growing discourse on sustainable rural development and the pivotal role of green finance in creating a harmonious balance between economic prosperity and ecological preservation.