This study investigates the relationship between business innovation and organizational sustainability among small and medium-sized enterprises (SMEs) in Abeokuta Metropolis, Ogun State, Nigeria. The research examines how product innovation (PDIN), process innovation (PRIN), and marketing innovation (MKIN) influence environmental sustainability (ESV), economic sustainability (EST), and social sustainability (SST). An ex post facto design was used, with population of 5,425 registered SMEs. Using Taro Yamane’s formula, a sample size of 400 SMEs was actualized, and primary data were collected through questionnaires administered to owners, managers, and supervisors. Responses were analyzed using multiple regression techniques, aided by SPSS (version 23). The findings reveal that business innovation significantly enhances environmental sustainability, with PRIN (β = 0.803, p = 0.000) exerting the strongest effect, followed by PDIN (β = 0.580, p = 0.000) and MKIN (β = 0.024, p = 0.002). For economic sustainability, PRIN again emerged as the strongest predictor (β = 0.513, p = 0.000), while PDIN (β = 0.132, p = 0.022) and MKIN (β = 0.513, p = 0.034) also contributed positively and significantly to EST. In contrast, only MKIN (β = 0.459, p = 0.000) exert a positive and significant on SST, while PDIN and PRIN were not statistically significant in this dimension. The study concludes that innovationoriented resources serve as strategic assets that enable SMEs to attain lasting competitiveness and sustainability. It recommends that SMEs managers adopt innovative technologies and streamline procedures to progress their efficiency, prioritize eco-friendly product development, and deploy creative marketing strategies such as green branding and community-oriented campaigns to strengthen customer trust, social legitimacy, and long-term survival.