Vermicomposting is a promising biotechnological tool that is a prime example of transforming waste into wealth. Using earthworms’ innate ability to collaborate with microorganisms, this environmentally friendly method turns organic waste into valuable resources. This review examines vermicomposting as a sustainable method of managing organic waste and recovering resources. Its dual potential to solve waste issues and produce valuable resources is reviewed. Vermicomposting, a bio-oxidative process powered by microorganisms and earthworms, is an exceptionally environmentally friendly method of turning organic waste into soil amendments and fertilizer-rich nutrients. The chapter examines the basic biochemical processes of vermicomposting, emphasizing the vital interactions between microorganisms and earthworms that promote adequate nutrient enrichment and organic matter decomposition. We assess a variety of organic waste streams, such as industrial bio-wastes, municipal solid waste, and agricultural residues, looking at their appropriateness and conversion into products with added value like vermicompost, vermiwash, and earthworm biomass. The research highlights explicitly the economic feasibility of vermicomposting activities at various scales, ranging from residential to commercial, showcasing its capacity to generate wealth while upholding the ideals of the circular economy. In addition to offering substantial economic opportunities through producing high-quality organic fertilizers, our discussion shows that vermicomposting provides an environmentally friendly waste management solution. This helps to support sustainable agriculture, conserve resources, and determine future directions for improving vermicomposting procedures and growing their use in sustainable waste management.