India’s urbanization process has caused waste management problems in its smart cities, with 62 million tons of municipal solid waste annually. Linear waste management practices, founded on a “take-make-dispose” paradigm, accelerate environmental, social, and economic problems, prompting a transition to circular economy models. This research identifies the ways circular economy strategies—waste reduction, material reuse, and recycling—can be applied to India’s smart city waste management in order to meet these challenges. Using qualitative analysis, the research examines secondary data from government reports, academic research, and case studies using thematic content analysis. The research finds poor segregation of waste, a lack of adequate recycling facilities, and low public awareness as the key constraints. Circular economy strategies like source segregation, Extended Producer Responsibility (EPR), and waste-to-energy (WtE) technologies provide promising ways to increase sustainability. IoT-enabled intelligent bins and data-driven collection systems enhance the efficiency of operations, like in Indore, the cleanest city of India. Public awareness campaigns and community involvement are essential to create a behavioral shift towards sustainable waste management. Regulatory systems such as the Solid Waste Management Rules (2016) need to be enforced more forcefully for circular economy uptake promotion. By waste-as-a-resource conversion, smarter cities can minimize landfills, promote economic gains, and realize sustainable urban growth. The limitations include dependence on secondary data, which could be out of date, and non-uniform implementation by cities. Future studies must emphasize scalable, tech-driven solutions and inclusive policies to address urban-rural chasms. Implementing circular economy approaches puts India’s smart cities at the vanguard of sustainable waste management, enabling cleaner, greener urban futures.