The article studies the essence of environmental entrepreneurship and its role in solving modern environmental challenges and social problems. Balancing economic, social, and ecological goals, environmental entrepreneurs at all stages of their activities prioritize sustainable development and responsible and reasonable strategic decisions that form the long-term value of entrepreneurial activity. Thus, environmental entrepreneurship, introducing social and ecological innovations, rational use of resources and minimization of negative impact on the environment, ensuring a continuous recycling and absorption process of any material, promotes economic growth and social welfare of all segments of the population; promotes social inclusion and integration, a realization of human potential, business activity, entrepreneurial ability; expands opportunities for people with special needs, and marginalized; improves the level and quality of their life, reduces the differentiation of society, etc. Analysis of international experience has revealed that, in modern conditions, environmental entrepreneurship has received international recognition as a response to global environmental challenges. At the same time, international cooperation, standardization, and technology exchange are key factors in the development of ecological entrepreneurship at the international level. Legislative support, financial incentives, and increased consumer awareness create a favorable environment for green (sustainable) businesses. Despite the challenges of a large-scale war, progress is being made in the development of environmental entrepreneurship in Ukraine, in particular through the restoration of infrastructure and the introduction of European environmental standards. It is generalized that the development of environmental initiatives in the context of the post-war reconstruction of Ukraine will ensure the realization of the potential to stimulate economic development, create new opportunities for business and employment, generate profit and income, ensure the restoration of affected areas and rural development, promote the transition to a low-carbon economy, solve social problems. However, the implementation of these tasks requires compliance with the following principles: an integrated approach to the balance of economic, social, and environmental components of environmental entrepreneurship in the interests of sustainable development; investments in education to spread knowledge and skills in the formation of sustainable development public culture; impact investments, inclusive social and environmental innovations as the basis for economic growth; cooperation between governments, businesses, society, and communities as the basis for implementing sustainable development initiatives.