The manufacturing industry has been facing the pressure of supply-demand and climate change around the globe. Many industry players are constantly seeking for alternative option to strike a good balance between operation and environmental performance. Despite many studies on lean and green that have been done, there is no definite definition for lean and green. This paper explores the evolution and contribution of lean manufacturing and green manufacturing. The paper’s main contribution is to focus on the application and impact of lean and green approach in the manufacturing industry. The common challenges and confusions faced by the manufacturing industry are studied. This paper identifies the similarities and benefit of both lean and green approaches, the synergy effect of lean and green, application tools, and misconception of lean and green. It allows the industries to have a better understanding on the application of tools and challenges prior to moving forward with actual implementation of the lean and green approach. This paper also identifies potential research gaps which address the need of effective lean and green implementation strategy in the industry. The need to reduce the implementation gap for lean and green approach will contribute significantly towards sustainable manufacturing. © 2019, Springer Nature Singapore Pte Ltd.