<p>This paper discusses the significance of the Green Supply Chain Management (GSCM) practices in achieving sustainable development in the Palestinian Islamic Development Company as it addresses a significant gap in the literature that relates fragile and conflict based economies. A quantitative analytical-descriptive design was employed during data collection, a structured questionnaire was given to 130 employees, 104 valid responses were obtained and analysed by use of PLS-SEM to test the measurement and structural models. The findings show that all five GSCM dimensions, green procurement, green manufacturing, environmental education, green distribution, and green packaging, have a significant and positive impact on sustainable development (R² = 0.817), and green distribution and green manufacturing have the highest effects as a result of logistical constraints and resource shortages in the long term. The results are an extension of the Resource-Based View and Institutional Theory, showing the work of green capabilities in the instability of institutional settings. In practice, the study identifies the necessity to integrate environmental standards into the procurement policy, improve the environmental skills of employees, upgrade the production and logistics infrastructure, and reinforce the institutional support of green innovation to enhance the resilience, competitiveness, and consistency with the national and global sustainable policies.</p>