Micro, Small and Medium Enterprises (MSMEs) play a pivotal role in India’s economic development by contributing significantly to employment generation, industrial output, and exports. In recent years, digital adoption has emerged as a key enabler of operational efficiency, competitiveness, and sustainability for MSMEs. Digital tools such as digital payments, e-commerce platforms, cloud-based accounting, and digital marketing systems have the potential to enhance business performance while supporting environmentally sustainable practices. Despite this potential, empirical evidence on the relationship between digital adoption, sustainability, and firm performance among Indian MSMEs remains limited, particularly at the micro-enterprise level. This study examines the impact of digital adoption on the economic performance and sustainability practices of MSMEs in India using a quantitative research approach. Primary data were collected through a structured questionnaire from 20 MSMEs operating in manufacturing and service sectors.