The shift towards a circular economy has become imperative due to the increasing global waste crisis and the limitations of the traditional linear economy model. Sustainable waste management lies at the core of the circular economy, emphasizing waste reduction, resource efficiency, and the continual reuse of materials. This article explores the challenges and opportunities presented by sustainable waste management in the transition to a circular economy. Key challenges include infrastructure gaps, consumer behavior, inadequate policy frameworks, and the economic viability of circular practices. On the other hand, opportunities for innovation, such as advanced recycling technologies, circular business models, and job creation, are emerging. Circular approaches to waste management, such as recycling, product lifecycle extension, and resource recovery, offer significant potential for addressing environmental degradation, mitigating climate change, and fostering economic growth. Successful case studies from countries such as Sweden, Japan, and the Netherlands demonstrate how effective circular economy strategies can lead to significant reductions in waste generation and resource use. However, for the circular economy to reach its full potential, collaboration between governments, businesses, and consumers is essential. This article highlights the need for systemic changes and innovative solutions to build a sustainable, waste-free future.