Different cultures play different roles in the organisation and identifying the strength of an effective culture is the absolute need during the changing dynamics of the market. Barney (1986) noted that it is difficult to change the culture unless that culture becomes a source of sustained competitive advantage. It is thus very important to understand the impact the culture of organisation has on its business performance. This paper attempts to focus on the impact of culture on innovation and sustainability. The paper also discusses on the importance of sustainable and innovative culture in the organisations and also the factors which affect them. An effort has also been undertaken to point out some practices which can sustain an innovative and sustainable culture. Today, companies engage in developing economically valuable characteristics in their cultures, such as innovation or other important organizational objectives, which helps them to differentiate and sustain. Innovation has played and continues to play an increasingly crucial role in determining organizational success as a guiding performance and competitive advantage (Leskovar-Spacapan and Bastic, 2007). Thus, this paper will provide an insight into the activities the organisation should focus in the process of building up an innovation and sustainable culture.