<p>Biomedical plastic waste (BMPW), dominated by single-use polyolefin-based products, has emerged as a critical environmental challenge following the COVID-19 pandemic. Despite the inherent recyclability of polypropylene (PP) and polyethylene (PE), most biomedical plastics are still disposed of through incineration or landfilling due to contamination risks, sterilization-induced degradation, and regulatory constraints. This review presents a PRISMA-guided critical synthesis of recycling and recovery strategies for biomedical plastics, with a focused emphasis on polyolefin-rich waste streams. Rather than cataloguing technologies, the review integrates polymer composition, sterilization effects, interfacial degradation, compatibilization strategies, and regulatory feasibility into a decision-oriented framework for circular implementation. Mechanical recycling is identified as the most viable route for segregated and sterilized PP/PE fractions, while compatibilized blending enables value-added recovery into non-critical products. Chemical recycling and energy recovery are evaluated as complementary pathways for degraded, mixed, or PVC-contaminated streams. The analysis highlights that recyclability is governed less by polymer chemistry alone and more by upstream segregation efficiency, sterilization history, and regulatory alignment. By linking material science with operational and policy realities, this review provides actionable insights for healthcare facilities, recyclers, and policymakers seeking to transition biomedical plastics toward circular economy pathways.</p>