The transition towards a circular economy has gained significant attention as a promising strategy to reduce waste and enhance resource efficiency in various industries. This comprehensive review delves into the principles, mechanisms, and case studies that elucidate the role of circular economy practices in achieving sustainable resource management. By examining the lifecycle of products and materials, the paper highlights innovative strategies such as product redesign, material recovery, and closed-loop systems that contribute to waste minimization and optimal resource utilization. Furthermore, the review underscores the economic, environmental, and social benefits of adopting circular economy principles, emphasizing their potential to drive sustainable development and mitigate the adverse impacts of linear consumption patterns.