Introduction: Sustainability in higher education has gained global significance, with universities playing a crucial role in fostering sustainable practices through curriculum integration, campus operations, and stakeholder engagement. Purpose: This review examines the trends, challenges, gaps, and prospects of sustainability in Indian higher education institutions (HEIs). Methodology: The study employs a systematic literature review methodology, utilizing the PRISMA framework to identify, screen, and analyze 46 relevant studies published in peer-reviewed journals and policy reports over the past 10–15 years. Key areas explored include the integration of sustainability in academic curricula, institutional governance policies, operational sustainability measures, and the role of faculty and students in promoting sustainability initiatives. Findings reveal that while Indian universities have made progress in sustainability education and campus greening programs, challenges persist, including financial constraints, inadequate policy enforcement, and limited stakeholder engagement. The study identifies a critical gap in research on stakeholder participation, industry-academia collaboration, and the inclusion of marginalized communities in sustainability discourse. Future research should focus on participatory governance models, leveraging technology for sustainability tracking, and enhancing cross-sector partnerships. The findings contribute to sustainability and stakeholder theory by emphasizing the importance of inclusive, multi-stakeholder engagement in higher education sustainability initiatives.