The shift from linear to circular economic models is critical for addressing resource depletion and environmental challenges. Blockchain technology, with its attributes of transparency, traceability, and decentralized data management, provides innovative solutions to enhance circular economy (CE) practices. This study develops a conceptual framework to integrate blockchain into CE, focusing on optimizing environmental, economic, and social sustainability. Through an extensive review, the study identifies blockchain’s role in tracking material lifecycles, reducing waste, and automating processes like recycling through smart contracts. Findings reveal that blockchain-enabled CE practices minimize greenhouse gas emissions, reduce operational costs, and enhance resource efficiency. Additionally, these practices create green jobs, promote fair labor standards, and foster community engagement. The study concludes that blockchain-powered CE strategies significantly support sustainability goals but require addressing challenges like energy consumption and IoT integration. This research offers actionable strategies for implementing blockchain-enabled CE systems.