This conceptual paper examines blended working practice as a transformative strategy for fostering sustainable and economic innovation in contemporary organizations. Blended working, which integrates remote and on-site work, has gained traction due to rapid technological advancements, evolving workforce expectations, and the need for resilient business models. It presents significant sustainability benefits by reducing office space requirements, energy consumption, and commuting-related carbon emissions, aligning with global sustainability objectives. These practices not only lower operational costs but also enhance employee well-being, leading to increased productivity and job satisfaction. Economically, blended working supports financial flexibility by reducing overhead expenses, enabling organizations to reallocate resources toward innovation-driven projects and long-term growth initiatives. Furthermore, the model facilitates access to diverse talent pools, promoting inclusivity and bringing varied perspectives essential for fostering creativity and strategic decision-making. The successful implementation of blended working depends on effective leadership, robust digital infrastructure, and an organizational culture that embraces adaptability, continuous learning, and technological integration. Additionally, this paper highlights how blended working supports circular economy principles by promoting sustainable operations such as digital documentation, virtual collaboration, and energy-efficient practices. Ultimately, blended working emerges as a pivotal approach that harmoniously integrates sustainability and economic resilience, driving sustained innovation, competitive advantage, and long-term organizational success.