["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study investigates the bi‐directional relationship between corporate sustainability and environmental uncertainty, focusing on key moderators that shape firms' strategic responses. Using fixed‐effects regressions with S&P 500 data (LSEG Refinitiv Workspace, 2005–2022), we present two key findings. First—mobilizing resource‐based theory (firm level)—we show that firms increasing corporate sustainability can reduce the environmental uncertainty they face. This effect is more pronounced for firms with strong brands and patents value (moderator variable). Second—using contingency theory (industry level)—we find that rising environmental uncertainty across an industry prompts firms to increase corporate sustainability. This response is more effective when firms provide environmental management training (moderator variable). These empirical results synthesize conflicting views in the literature. We theorize why corporate sustainability and environmental uncertainty may have both negative and positive relationships simultaneously, depending on the level of analysis and firms' capabilities.\n"]