There has been a major transformation in economic and industrial practices that are increasingly centred on the concept of circular economy. It seeks to optimise resource utilisation by minimising its wastage and promote sustainable growth. This transformation is due to the historical revolutions that emerged from the late eighteenth century through Industry 1.0 to the continuing Fifth Industrial Revolution, which revolves around smart technologies. Every new era of industrialisation brought remarkable innovations and along with some challenges. The study reviews the historical progression of the circular economy by looking into every phase of industrial revolutions from Industry 1.0 to Industry 5.0. It offers a conceptual framework that addresses how technological innovations and industrial regulations have played an active part in shaping circular practices. It also discussed the challenges encountered during each phase of industrialisation. Lastly, it provides future solutions by drawing inferences from historical events for deriving new perspective on the circular economy in future. As this study is conceptual in nature, the historical events, progression, and challenges have been explained with the help of academic literature reviews, while stating the need of integrating industrial activities with circular economy practices.