Today, the focus of governments, industries, and consumers has significantly shifted from traditional products to the development of eco-friendly alternatives. Green product development is becoming essential for the survival of manufacturing businesses in most markets. In addition, with growing environmental concern, companies are actively competing in green economic development. Therefore, this paper aims to estimate new green product development according to the Dynamic capability theory. The current research is based on the paradigm of meta-positivism and utilizes a quantitative approach. Dynamic capability theory and structural equation modeling via M-plus software programs were used to analyze the statistical population consisting of CEOs and senior managers of 57 companies in Iranian dairy industry. The sample size was calculated using Cohen’s formula, and the questionnaire was provided to the sample members via email and social networks. The questionnaire’s reliability was confirmed using factor loadings, Cronbach’s alpha, and composite reliability. Also, its validity was evaluated using the AVE criterion. Researchers in this study were able to predict a high proportion of new green product development behavior using research variables. This shows that the exogenous variables used in the conceptual model were chosen correctly. The results underscore the negative impact of green technology turbulence and the positive effect of green product innovation, green entrepreneurial orientation, green transformational leadership, and green competitive advantage on new green product development. Additionally, the findings highlight the moderating effects of green Dynamic capability in improving new green product development. The impact of exogenous research variables on new green product development has been investigated in previous studies. However, there is a lack of studies on the moderating role of green Dynamic capability in this impact. This study aims to fill the empirical gap in the literature by demonstrating that business Dynamic capability effectively guides green product innovation and supports a green entrepreneurship orientation, which improves the success of developing new green products. Furthermore, by utilizing various theories as basic concepts, this research provides valuable theoretical and practical contributions, concepts, and recommendations for managers of dairy industry companies. Finally, our sample is collected from companies active in dairy industry and is limited to Iran.