This paper aims to offer strategic management recommendations for the incorporation of circular economy principles into municipal solid waste management and to disseminate knowledge regarding the implementation of this concept within local communities. This research combined systematic literature reviews with qualitative methods, utilizing content and descriptive analysis to evaluate the findings. The study indicates that municipal waste management in communities encounters numerous challenges, including insufficient funding, inadequate infrastructure, and noncompliance from the populace, all of which hinder effective municipal garbage management. In addition, a more significant concern is the lack of efficient techniques for recycling and waste segregation. Moreover, as urban populations increase, waste generation escalates, exerting strain on current disposal facilities. Implementing a circular economy strategy in municipal waste management has numerous benefits, including the reduction of landfill trash, the conservation of natural resources, and the generation of employment opportunities through material recycling and repurposing. Circular economy enhances environmental sustainability by reducing pollution and facilitating the transition to a more resilient, resource-efficient system. Moreover, educating people about circular economy principles enhances their understanding of sustainable practices, leads to less waste and resource conservation, and enhances economic prospects by generating green employment and fostering local innovation in waste management techniques.