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This study investigates the role of lean manufacturing practices in promoting sustainability within Malaysian manufacturing organizations, emphasizing the mediating effect of employee involvement. Utilizing a mixed-methods approach, including quantitative surveys and qualitative interviews, the research proposes a Smart Lean Model driven by employee innovation. By integrating operational efficiency with sustainable development, the study provides context-specific insights and practical recommendations for enhancing resource efficiency and reducing waste. The findings contribute to academic knowledge, support Industry 4.0 and green policy initiatives, and offer strategic guidance to practitioners, policymakers, and organizations striving for sustainable industrial advancement in the Malaysian context.