Environmental accounting disclosure has become a central issue in contemporary accounting, sustainability, and corporate governance discourse due to escalating environmental degradation, climate change risks, and stakeholder demand for transparency. Despite increasing regulatory attention and global sustainability initiatives, environmental accounting disclosure remains conceptually fragmented and unevenly implemented across jurisdictions, particularly in developing economies. This paper adopts a qualitative conceptual research design to critically examine the evolution, conceptual foundations, theoretical underpinnings, measurement challenges, empirical insights, and policy implications of environmental accounting disclosure. Drawing on extant scholarly literature, international reporting frameworks, and institutional policy documents, the paper integrates stakeholder theory, legitimacy theory, and sustainable development theory to explain disclosure behaviour and outcomes. The discussion reveals that while environmental accounting disclosure enhances corporate transparency, legitimacy, and sustainability orientation, its effectiveness is constrained by voluntary disclosure regimes, lack of standardized valuation methodologies, institutional weaknesses, and contextual differences. The paper concludes by proposing policy recommendations and a structured future research agenda aimed at strengthening environmental accounting disclosure as a strategic governance and sustainability mechanism.