Managing human activity in outer space requires a mixture of tools, including technology, economics, and law. Though technology and economics are of prime importance, the space sector needs a clear, coherent, and adequately granular regulatory environment that ensures its sustainable development and also serves sustainability on Earth. No doubt the law can be a tool for introducing sustainability into the space sector’s daily life. To serve as such, law should be almost as dynamic and agile as the space activity and space environment. The space law should not only be descriptive, but it should also address new concepts such as in-orbit servicing, asteroid mining, etc. By doing so, it should also embrace the technical aspects of space activities even if they are not mandatory by international law. The lawmakers, especially national legislators, must also not be afraid to tackle new areas. The primary duty of national governments is to enhance safety and minimize risk in all, traditional and emerging space ventures, both in material and financial contexts that do not only directly affect their citizens and their assets, but also the environment, which obviously serve the entire society in an inclusive way and on a long-term basis. The purpose of this paper is to provide a voice in the discussion on the concept of sustainable development of space activities and suitability of the existing space regulatory framework. In order to draw some conclusions, it seems necessary to analyse the notion of sustainability against the existing legal framework, so as to state whether it is still up to date in this respect and whether it may contribute to materializing the sustainable development of the space sector. In particular, it is interesting to consider whether the liability regime, including the notion of damage and prerequisites of claims for compensation as adopted in the Liability Convention may still serve its purpose and answer the needs of the shift in the priorities of space exploration. Finally, I intend to consider the possibility of drawing on principles from other branches of law, including in particular, environmental law and insurance law and practice, in order to build legal mechanisms to implement the demands of sustainable development of space. Thus, among other issues, the topic of space environmentalism as well as the coherence of space and earth sustainability instruments will be analysed.