The objective of the present study is to examine the impact of green knowledge management on green innovation and the mediating role of environmental awareness, which has been studied in food supply chain SMEs in a developing country, Pakistan. Data was gathered through adopted questionnaires from past studies and connivance and snowball sampling strategies adopted in order to achieve the study objectives of the present study. A total of 309 cases were considered after the data cleaning process in SPSS version 25 for testing the proposed hypothesis structural equation modelling applied via SmartPLS version 3. The present study's findings confirmed the direct effect of green knowledge management and environmental awareness on green innovation in food supply chain SMEs. However, environmental awareness was found to have a more positive and significant impact on green innovation than green knowledge management due to a higher beta value—furthermore, the partial mediation effect of environmental knowledge revealed between green knowledge management and green innovation. Therefore, the present study suggested to top management food supply chain SMEs and policymakers that they should consider these variables in their future policies to get better results in green innovation in developing countries such as Pakistan.