Environmental, social, and governance (ESG) practices have gained significant attention among Malaysia’s small and medium enterprises (SMEs). While awareness levels are high, with 80% of SMEs recognising the importance of ESG, the adoption rate remains at 60%, with a stronger emphasis on governance and social aspects rather than environmental initiatives. Of the three ESG pillars, SMEs focus more on governance and social practices than on environmental initiatives. Various stakeholders, specifically government agencies, trade associations, and training providers, have contributed significantly to the remarkable improvement. Despite this, many SMEs need help to effectively integrate ESG practices into their business. Only by doing it correctly can SMEs reap the benefits of ESG implementation. Forging ahead, SMEs must overcome the challenges and operationalise sound ESG practices and strategies into their businesses. In this regard, this chapter aims to identify the primary obstacles hindering ESG adoption and discuss practical strategies to guide SMEs in their ESG journey. More so, this chapter will contribute practical policy recommendations, enabling the regulators and future research directions to drive ESG development for SMEs further.