Despite the growing interest in examining ISO 14001 EMS implementation and firm's performance, little attention has been devoted especially among the SMEs in Malaysia. Based upon 61 responses questionnaire survey, this study examines the relationship of ISO 14001 EMS implementation to Malaysian SMEs performances. The findings of this study confirm that ISO 14001 EMS implementation has a positive and significant relationship with SMEs's performance. This finding is consistent with the environmental management literature mostly published in the developed countries. This study is important as the empirical results provide an indicator to encourage other SMEs which has no EMS in place to consider joining the bandwagon. Since the ISO 14001 standard is still on a voluntary basis in Malaysia, this study able to give empirical evidence on SMEs performance appears to be critical at this juncture noting the fact that SMEs contributes to the largest business establishments in Malaysia.