Using Chinese A-share listed family businesses from 2010 to 2020 as a sample, this study explores the impact and mechanism of second-generation participation in management on green innovation in family businesses. Research has found that, firstly, the participation of the second generation in management suppresses the green innovation behavior of family businesses, which is manifested in the second generation's participation in managing family businesses by reducing the level of risk-taking, thereby inhibiting green innovation; secondly, further analysis shows that the degree of open marketization and strong product market competition have a positive moderating effect on the relationship between the two. The research conclusion remains robust after variable measurement, Heckman two-stage test, and instrumental variable test. Our research not only reveals the hindering effect of second-generation participation in management on green innovation in family businesses, but also provides more specific suggestions for intergenerational inheritance of family businesses to further optimize their strategies.