<p>Global food waste represents an escalating ecological, economic, and social crisis, prompting an urgent search for sustainable management solutions. Composting, recognized globally as a viable method for converting organic and green waste into valuable soil amendments, enhances agricultural productivity and promotes environmental sustainability. Among various composting additives, bamboo fiber, a rapidly renewable and abundantly available resource, demonstrates significant promise due to its unique physicochemical characteristics. High cellulose and lignin content make bamboo fiber highly effective in improving compost quality by optimizing moisture retention, enhancing aeration, stabilizing compost structure, and promoting microbial diversity. This review critically analyzes the role of bamboo fiber in composting systems, emphasizing its specific advantages and addressing associated challenges, such as slow decomposition rate and high carbon-to-nitrogen (C/N) ratio, potentially leading to nitrogen immobilization. Comparative global and Malaysian perspectives on food waste management highlight the significant potential of bamboo fiber composting to reduce landfill dependency, mitigate methane emissions, and foster sustainable agricultural practices. By characterizing bamboo’s key properties and elucidating their functional roles in composting, this review offers a roadmap for incorporating bamboo fiber into circular-economy frameworks and advancing sustainable waste valorization. This review also identifies critical research gaps and recommends innovative future directions, including optimizing bamboo pretreatment and composting techniques. Strategic integration of bamboo fiber into existing waste management frameworks can significantly enhance global efforts towards sustainable development and environmental conservation.</p>