Halal food SMEs play a significant role in Malaysia's economic development, as the halal food industry is a major contributor to the country's GDP and employment. However, the industry faces a challenge in meeting the growing demand for eco-innovation while also complying with government regulations. This study aimed to investigate the implementation of eco-innovation practices among SMEs in the Malaysian food industry. The study included four independent variables: technological, organizational, environmental, and individual factors, to measure their relationship towards eco-innovation performance. A questionnaire was used to collect data from 150 employees in the food SME sector who implemented eco-innovation practices. The study's findings revealed that technological, organizational, environmental, and individual factors have a significant positive relationship with eco-innovation in Malaysian food industry SMEs. This study contributes to the literature by providing new insights into how teleology ethics guide Muslims to consume halal food purposefully, intentionally, mindfully, compassionately, and conscientiously. Furthermore, it enhances the knowledge on eco-innovation practices among SMEs in the Malaysian food industry, which has been lacking in research. However, this study has some limitations. Firstly, the study only focused on the Malaysian halal food industry, which limits the generalization of the findings to other industries or countries. Secondly, the sample size was relatively small, and the data was collected from a single source. Therefore, future research should consider a larger sample size from multiple sources to improve the generalizability of the findings. Additionally, future studies could explore the impact of different eco-innovation practices on the performance of SMEs in the halal food industry.