["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nAchieving higher environmental performance for small‐ and medium‐sized enterprises is critical to staying competitive in the tourism sector. This study examines how green human resource practices influence environmental performance through the direct and indirect serial mediation of pro‐environmental attitudes, environmental awareness, and employee engagement. The data were collected from 507 employees in the tourism sector of China. Smart PLS (4.0) was used to test the proposed relationships statistically. The findings indicate that green HRM practices have a significant influence on environmental performance, both directly and indirectly, through pro‐environmental attitudes, environmental awareness, and employee engagement. Pro‐environmental attitudes and environmental awareness have a positive impact on employee engagement, and all three mediators demonstrate significant individual and serial mediation effects. Theoretically, the study extends Social Exchange Theory by conceptualizing environmental reciprocity as a moral and cognitive exchange, and by unpacking the sequential psychological mechanisms that link HR practices to firm‐level sustainability outcomes. It adds empirically to existing models by emphasizing multilayered mediation rather than linear causality. Practically, the findings offer a roadmap for SME managers and policymakers to enhance environmental performance by strategically implementing green HRM, cultivating environmental values and awareness, and fostering employee engagement. The study highlights the crucial role of internal HR‐driven mechanisms in driving sustainable transformation within the tourism SME sector.\n"]