Sustainability practices, which have recently become increasingly important, require the development of a sustainable supply chain that considers economic, environmental and social concerns simultaneously, collaboration with downstream and upstream supply chain stakeholders, and effective information sharing. However, even though firms claim to be sustainable, they often do not incorporate the environmental and social dimensions of sustainability into their supply chains, resulting in a gap between firms' strategic intentions and actual actions on sustainability, referred to as greenwashing. In this study, the concept of greenwashing is comprehensively addressed from a supply chain perspective. In this context, the concept of greenwashing is examined in terms of selective disclosure, decoupling, signaling and corporate legitimacy theories, why firms may engage in greenwashing practices and the types of greenwashing at the firm, product and supply chain level. We also emphasize that institutional context, leadership style, governance, firm size, and firm maturity are the main firm characteristics that affect greenwashing incidents along the supply chain. It also emphasizes what strategies and practices can be adopted to prevent greenwashing along the supply chain. In this context, it is emphasized that supporting green suppliers and ethical leadership are critical in preventing greenwashing cases that may occur in companies' supply chains, the importance of ensuring that sustainability goals are first understood and implemented within the organization, and the importance of ensuring the participation of all employees within the organization in addition to the support of senior management in organizational alignment. It is also stated that creating a lean sustainability organization and sharing responsibilities among all relevant business units is a facilitator of supply chain sustainability. Adopting sustainability efforts from the bottom up within the organization, focusing on education both within the organization and across the country, internal and external collaborations, utilizing Kyosei philosophy and new technologies (e.g., Blockchain Technology, IoT, Big Data, and AI), ESG reporting with government support and regulatory framework are also recommended.