Amidst a world grappling with escalating environmental and social crises, this paper delves into how sustainability can be integrated into the fabric of organizations. In this context, we specifically want to understand the dynamic interaction between organizational and individual sustainability narratives in German SMEs in their contribution to decision-making. By taking the perspective of the Communicative Constitution of Organizations Theory and integrating Weick's Sensemaking Theory with the Osgood-Schramm Communication Model, the study analyzes how these sustainability narratives influence sensemaking which is integral to decision-making. We collected our data by conducting nine semi-structured interviews with representatives from five medium-sized food production companies in Germany. Our findings highlight the dynamic interplay between organizational and individual narratives that shapes decision-making in German SMEs. We find that both types of narratives significantly impact the sensemaking process. This process is integral to forming organizational and individual identities that influence perspectives on sustainability and ultimately decisions. Individual and organizational narratives are interdependent, continuously influencing and reshaping each other. Individual narratives, rooted in personal experiences and values, not only solidify personal identity but also affect organizational narratives, aligning with or challenging them to steer strategic sustainability focus. Organizational narratives, meanwhile, provide a framework that shapes individual actions and perceptions, molding the collective identity and guiding culture. Middle managers are key in this ecosystem, serving as sensegivers and moderators who navigate and mold these narratives within the company. The study offers both theoretical contributions and practical recommendations for enhancing sustainability in small and medium sized companies, emphasizing the importance of personal and organizational narratives.