The chapter delves into the transformative role of the informal sector in municipal solid waste recycling and management, highlighting its role in addressing efficiency, sustainability, and inclusivity. It highlights the environmental and public health threats posed by unchecked waste accumulation and the limitations of traditional waste management systems. The informal sector’s operations, including collection, sorting, and recycling, are crucial for building a circular economy that minimizes waste and conserves resources. The chapter also addresses health and safety issues faced by informal waste workers, proposing integration strategies such as legal recognition, social security measures, and training programs. It also presents collaborative approaches with governments, such as Public–Private Partnerships and Cooperative Models, to harness the strengths of both sectors. The chapter concludes by highlighting the interconnectedness of formal and informal waste management systems, contributing to a nuanced understanding of the informal sector’s pivotal role in shaping the future of municipal solid waste recycling and management.