The sugar industry produces a large amount of waste, such as bagasse, bagasse ash, molasses, and press mud, which are problem-causing and have potential for useful recycling. This chapter explores the utilization of sugar industry by-products across various sectors, highlighting value-added transformations and their role in fostering a circular economy within the sugar industry. Bagasse is rich in cellulose, hemicellulose, and lignin. It can be used as an energy source for the generation of biofuels, as material for the paper and pulp industry, and as feedstock for producing various value-added chemicals. Molasses is a thick liquid with a high sugar concentration and nutritional value; it has potential uses in bioethanol production, microorganism feed, and animal feed. Press mud, a residual nutrient, offers an opportunity for compost creation and can enhance the land’s value for agricultural use. In addition, effluent arising from sugar processing, which may contain organic load, nutrients, etc., can be further treated and used for irrigation or as fodder for biogas plants. The sustainable utilization and valorization of sugar industry waste products reduces environmental pollution and creates high-value applications in the food, biotechnology, and industrial sectors. Embracing these strategies supports a circular economy, enhancing resource efficiency and sustainability within the sugar industry.