<p>Growing environmental concerns associated with the accumulation of petroleum-based plastics have intensified interest in sustainable materials derived from renewable and waste resources. Although numerous reviews have discussed individual biopolymers or specific aspects of biodegradable plastics, a comprehensive evaluation integrating waste feedstocks, material performance, environmental sustainability and commercialization remains limited. This review addresses this gap by providing a multi-criteria assessment of waste-derived biopolymers as sustainable alternatives to conventional petroleum-based plastics. Natural-source biopolymers, microbial biopolymers and chemically synthesized bio-based biodegradable polymers are critically evaluated with respect to their waste-derived feedstocks, production pathways, physicochemical properties, functional modifications and end-of-life management. Particular attention is given to the influence of plasticizers, nanofillers, polymer blends and bioactive additives on mechanical, thermal, barrier and degradation properties. The review further compares decentralized and centralized production strategies and critically examines life cycle assessment and techno-economic studies to identify environmental trade-offs, cost drivers and commercialization barriers. Current evidence demonstrates that waste-derived feedstocks can substantially improve resource efficiency and support circular bioeconomy objectives while reducing dependence on virgin biomass. However, large-scale implementation remains constrained by feedstock variability, production costs, performance limitations, inconsistent biodegradation under real disposal conditions and inadequate waste management infrastructure. Future progress will require standardized sustainability assessment methods, advanced material engineering and integrated waste valorization strategies to enable wider industrial adoption of waste-derived biopolymers.</p>