Small and Medium-sized Enterprises (SMEs) play a vital role in this developing world. They are considered as the backbone of global economic activity. This research paper aims to address issues and challenges hindering the growth of SMEs in Cambodia, examine how SMEs contribute to sustainable development, highlight the priority sectors for SMEs’ sustainability and suggest policies and strategies promote SMEs in Cambodia. Cambodia which known as one of the developing countries and also a low middle-income country has been suffered from poverty over the decades. Due to this reason, this research is being conducted to reduce poverty in Cambodia by promoting SMEs for sustainability so that it can help create employment, improve the national economy, and living standard of Cambodians.