This study investigates the influence of corporate greenwashing, particularly through social media, on retail investor’s decision-making and the underlying behavioral biases that affect these decisions. Greenwashing, a deceptive marketing practice of conveying a false impression of environmental responsibility, has become increasingly prevalent, exploiting the viral nature of social media to reach a broad audience. The analysis employs regression techniques from IBM SPSS to explore both the direct and indirect effects of greenwashing on investor behavior, with a focus on the mediating roles of perceived corporate social responsibility (CSR) and investor trust. Data were collected through survey technique and interviews that includes stratified sampling and snowball technique with retail investors to capture their experience and the perception of greenwashing. Findings reveal that greenwashing significantly distorts investor decision-making by leveraging behavioral biases such as overconfidence, herding, and availability bias. The results tell the significance of Legitimate sustainability practices and transparent communication in constructing investor trust and making aware investment decisions.