The diamond industry has experienced a significant transformation with the global rise in ethical consumerism, particularly in rapidly urbanising regions. This study investigates urban consumers’ attitudes, awareness levels, and behavioural intentions towards sustainable diamonds, specifically lab-grown Diamonds. Using a mixed-methods research approach, this study explores how factors such as price sensitivity, brand transparency, social responsibility, environmental consciousness, and trust in certification systems shape consumer decision-making. The study finds that urban consumers are turning towards sustainable diamonds to avoid environmental harm, support conflict-free sourcing, and reduce their carbon impact. Younger cohorts, specifically Generation Z and millennials, demonstrate a stronger inclination towards lab-grown diamonds, valuing both affordability and alignment with their personal values. However, gaps in consumer knowledge regarding sustainability claims and limited confidence in certifying bodies remain key challenges. The findings highlight  that clearer communication, open supply chains, trustworthy eco-labels, and better consumer awareness are key to boosting the appeal of sustainable diamonds. Overall, the findings highlight sustainable diamonds as both a viable business opportunity and an ethical alternative, driven by evolving value systems among urban consumers..