In today’s ambiguous and complicated business environment, businesses are required and mandated to be agile and think rapidly. Building on the theory of dynamic capability, the present research makes a strong argument that strategic agility is a key component in managing continuous change effectively. The primary objectives of this research are to examine the impact of strategic agility on digital transformation and environmental sustainability and to explore the effect of digital transformation on environmental sustainability. Additionally, we investigated the indirect impact of strategic agility on environmental sustainability via digital transformation. To achieve these objectives, a self-administered questionnaire was developed and used to gather data from 284 managers in manufacturing companies in Jordan. To test the research hypotheses, structural equation modeling (SEM) with Amos 24.0 was used. The results revealed that strategic agility positively impacted both digital transformation and environmental sustainability. Furthermore, digital transformation positively affects environmental sustainability. Additionally, digital transformation partially mediated strategic agility’s impact on environmental sustainability. The results indicate that businesses use and employ strategic agility as a means to achieve the desired results, and it may operate as a proactive facilitator and catalyst, allowing organizations to optimize most of their available resources, achieve the desired digital transformation, and accomplish the expected environmental sustainability objectives and results.