This study explores the perceptions, challenges, and influencing factors encountered by mutual fund distributors in promoting ESG (Environmental, Social, and Governance) mutual fund schemes in India. With the increasing emphasis on responsible investing, ESG mutual funds are gaining attention; however, their effective promotion depends significantly on the preparedness and engagement of distributors. The study employs a combination of statistical techniques including the Friedman Mean Rank Test, Regression Analysis, and Kruskal Wallis Test to analyze distributor responses regarding barriers, the impact of training, and the influence of ESG factors. Findings reveal that distributors face major challenges such as perceived lower returns, limited investor awareness, lack of ESG-specific training, and product complexity. Training and development programs are found to significantly improve distributor awareness, sales effectiveness, and objection handling, indicating a strong need for structured capacity-building initiatives. Additionally, environmental, social, and corporate governance factors individually influence distributor preference in promoting ESG funds, with social and governance factors being particularly impactful. The performance analysis of various ESG mutual fund schemes demonstrates a wide range of returns, with some newer funds showing strong growth, debunking myths around ESG fund underperformance. The study concludes that bridging knowledge gaps, enhancing training infrastructure, and fostering distributor engagement are essential to mainstream ESG investment in India. These findings provide actionable insights for fund houses, regulators, and educators aiming to build a robust ESG distribution ecosystem. Overall, the study highlights that empowering distributors through strategic interventions will play a crucial role in accelerating the acceptance and success of ESG mutual funds, thereby supporting India’s broader goals of sustainable and responsible investment.