The article aims to investigate the role of greenwashing behaviour on firm's risk. Using empirical data from the US, the UK, and India from 2016 to 2023, this study employs Fama MacBeth regression along with various robustness checks, including White cluster, Newey-West, and 2SLS, to analyse the relationship between greenwashing and firm risk. Results indicate an overall positive relationship between greenwashing and a firm's risk, particularly pronounced in large firms and firms with low liquidity and high leverage. The study finds a negative impact of greenwashing on firm risk in the USA and UK, while Indian firms show a positive reaction, likely due to lagged regulatory enforcement and higher information asymmetry. Study highlights a negative impact of greenwashing on firm's value, suggesting a decline in investor's trust. The study contributes by delving into the consequences of greenwashing and cautions management to avoid short-term cost-efficiency business communication strategies that could backfire.