Circular economy and social innovation are becoming increasingly important concepts in addressing the environmental and social challenges faced by modern society. This chapter presents an exploratory study that examines the relationship between circular economy, sustainability, and social innovation, using qualitative data from an Intentional Sustainable Community—PPAUW. The study analyzes how circular economy practices developed at the micro-scale by this community can be understood as social innovation and their importance for sustainable development. The findings provide insights into the role of social innovation in promoting circular economy practices and sustainable development. The practices analyzed have a strong DIY—Do It Yourself—component that comes from the creativity of the members of this community. Creativity is an essential dimension that is directly related to the representation of innovation that the interviewed members reveal to have. The study highlights the challenges faced by circular economy practices, such as producing aesthetically pleasing items and making the practice more widespread. The conclusions on the multifaceted nature of innovation and its relationship to social needs, creativity, and sustainability provide valuable insights for the field of circular economy. The study underlines relevant aspects for a valuable framework for understanding how circular economy practices can promote sustainability, creativity, and social well-being.