The agricultural sector is under growing pressure to increase food production with limited resources while minimizing environmental degradation. The circular economy offers a sustainable approach by converting agricultural waste into valuable inputs, reducing reliance on external resources, and improving soil health and farm profitability. This article examines the core principles of the circular economy, its significance in contemporary agriculture, and its contribution to waste reduction and sustainability. It also distinguishes circular economy concepts from integrated farming systems. Additionally, the article discusses future prospects, emerging technologies, and key challenges in implementation, emphasizing the importance of supportive policies, institutional coordination, and capacity building.