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www.researchjournali.com This paper report results of an explanatory survey of literature on the relationship between environmental accounting, macroeconomic indicators and sustainable development. A detailed survey of the literature on environmental accounting, national accounting and sustainable development was used by the researchers in order to establish correlation between those variables. The macroeconomic indicators were measured by focusing on the national accounts performance measures like the gross domestic product, gross national income and the net savings. The environmental accounting was measured by looking at the environmental cost in the national accounts and adjusting them to get environmentally adjusted domestic product and domestic income whilst the sustainable development was measured by the use of social capital and natural capital through the genuine progressive income, index of social economic welfare and the genuine saving. The researchers found out that there is a direct relationship between environmentally adjusted indicators and sustainable development indicators and an inverse relationship with conventional macroeconomic indicators and the sustainable development indicators. The researchers recommended that further studies need to be carried out on how developing countries incorporate the environmental costs and social cost in their economi