The primary objective of this article is to analyse the environmental dimensions of the reconstruction process in Azerbaijan’s liberated territories. It begins by examining the environmental impact of the occupation of Armenia, highlighting the extensive damage caused to the ecosystem of the liberated territories, including flora, fauna, and water resources. Following the initial analysis of the environmental repercussions of the occupation, the article delves into the environmental aspects of the reconstruction effort, showcasing various measures and projects aimed at revitalizing the region’s flora and fauna, promoting renewable energy sources such as wind and solar energy, establishing ‘Green Energy Zones’ and ‘Smart Villages’, and employing smart agriculture techniques. Through these strategies, Azerbaijan demonstrates a comprehensive approach not only to addressing the environmental devastation caused by the occupation but also to proactively creating new ecosystems, which aligns with global sustainable development goals and will have less environmental impact. This indicates Azerbaijan’s commitment to not only restoring but also enhancing the environmental sustainability of the liberated territories.