In this paper, we examine the role of circular economy principles in municipal solid waste management in the United States, a major challenge as urban centers produce greater and greater volumes of waste. We also highlight the limitations of traditional “take-make-dispose” systems and assess the opportunities of a circular approach focused on reduction, reuse, recycling, and recovery. The paper builds on existing literature and best practices to evaluate the economic, regulatory, technological, social, and logistical barriers to the effective adoption of strategies related to the circular economy. We also single out significant economic roadblocks, including funding limitations and competition in the marketplace with raw materials, and regulatory obstacles rooted in fragmented policies across federal, state, and local levels. Technological innovations in the form of advanced sorting, chemical recycling, and smart data-driven waste management systems are redefining the process by which we can recover material from these waste outflows, which were also highlighted in the review. Also, the report highlights the role of stakeholder engagement and public education in changing consumer behavior and providing community support. Drawing upon domestic and international case studies, the paper describes effective models and transferable lessons that may guide U.S. policy reforms. The article makes strategic recommendations with a focus on making policy frameworks more cohesive, upskilling, modernizing infrastructure, and improving public and private sector collaboration. Our review contributes to this direction by providing a consolidated roadmap of action and recommendations to shift municipal waste management towards a sustainable and resilient system that conserves natural resources and supports economic growth while protecting public health.