The aim of this study is to investigate the effect of corporate sustainability performance on the level of cash holdings in companies listed on the Iranian capital market. Considering the key role of cash in the continuity of operations and financing of companies on the one hand and the increasing importance of environmental, social and corporate governance criteria in investment decisions on the other hand, this study seeks to explain the relationship between sustainability performance as a new strategic factor with the liquidity management of economic enterprises. The statistical population of the study includes all companies listed on the Tehran Stock Exchange, and by applying the systematic elimination method, a sample of 128 companies was selected during the period 2015 to 2024. The research method is descriptive-correlation with an applied approach, and to test the research hypothesis, multivariate regression based on mixed data (panel) with fixed effects was used. The descriptive findings of the study show that sustainability performance has a negative and significant effect on the level of cash holdings; More precisely, improving sustainability performance indicators in the three dimensions (environmental, social, and corporate governance) significantly reduces the need for companies to accumulate precautionary and surplus cash. This finding is fully consistent with the framework of balance theory (reducing opportunity costs), hierarchy theory (reducing external financing costs and information asymmetry), and agency theory (reducing agency costs and improving corporate governance) and shows that sustainability can be considered as an efficient mechanism for improving the financial efficiency of companies. The results of this research indicate that investing in sustainability is not only an imposed cost, but also a strategic tool for optimizing capital structure and risk management. Based on the findings, financial managers are advised to plan to improve sustainability performance, benefit from the benefits of reducing financing costs and increasing operational efficiency, and investors can also consider sustainability indicators as a complementary criterion in assessing the quality of management and risk of investee companies. Also, capital market supervisory institutions can pave the way for increased transparency and market efficiency by requiring the disclosure of sustainability reporting standards.