Green packaging has emerged as a solution for several environment-related issues. There is a growing concern about environmental issues among consumers which is forcing manufacturers to produce more environment friendly products. Using the Theory of Reasoned Action (TRA) as a theoretical framework, the current research investigates the relationship of the three variables (concern for the environment, knowledge about green packaging and beliefs about positive consequences of using green packaging) with consumer attitude towards paying a premium for green packaging. A survey was conducted among prospective customers in major cities of eastern and western India in June 2012. As predicted by the TRA, positive relationships exist between beliefs, consequences and attitudes toward paying more for green packaging. Overall concern levels, knowledge levels and beliefs were quite high for consumers in the sample. It is suggested that knowledge plays an important role in developing positive beliefs about green packaging. Results of the study also indicate that consumers are ready to pay premium for green packaging conditioned to the beliefs, though paying a premium based on knowledge and concern does not show sufficient support in the study. The study helps to extend the understanding about the process of attitude development towards green packaging.