Considering the importance of green economic growth and environmental sustainability in the discussion, it is crucial to understand its critical contributing factors and to draw results implications for the green policy. This research used the data of the South Asian Association for Regional Cooperation (SAARC) member countries for a period from 2005 to 2017. It adopted the panel autoregressive distributed lag technique to examine the hypotheses. The findings revealed that environmental sustainability is strongly and positively associated with national scale-level green practices, including renewable energy, regulatory pressure, and eco-friendly policies, and sustainable use of natural resources. Conversely, in our model, the "regulatory pressure" has an insignificant effect on economic growth. A necessary contribution of the present study is that a positive effect of green practices on national scale economic and environmental variables, particularly in the scenario of SAARC member states, can be noticed. At the end of the present study, we have provided policy implications for regulatory authorities and discussed potential areas for future research.