This article presents a literature review on the barriers faced by organizations in adopting digital transformation for eco-innovation and sustainable performance to address the surprisingly little research that has explored the connection between digitalization and eco-innovation. Through a systematic review of relevant literature, the article identifies and categorizes key barriers into three categories: technological, organizational, and environmental. Technological barriers include issues related to technological readiness, data management, interoperability, and cybersecurity. Organizational barriers encompass challenges related to organizational culture, leadership, change management, and resistance to change. Environmental barriers involve external factors such as regulatory frameworks, legal constraints, and stakeholder pressures. The review reveals that these barriers can significantly impede organizations' efforts to drive eco-innovation and sustainable performance. The article concludes by proposing avenues for future research and practical implications for organizations seeking to overcome these barriers. This contributes to the literature on digital transformation, eco-innovation, and sustainable performance, and provides insights for scholars and practitioners in this field.