The citrus industry generates considerable waste in the form of peels and discarded fruit segments, posing environmental challenges. This chapter addresses this issue by exploring the extraction and valorization of bioactive essential oils from citrus fruit waste. Essential oils, renowned for their aromatic and therapeutic properties, offer a sustainable pathway to convert this waste into valuable resources. The study employs eco-friendly and innovative extraction methods optimizing conditions for enhanced oil yield, chemical composition, and bioactivity. The research delves into the diverse applications of these oils, focusing on chemical composition and their biological activities. By evaluating economic viability, the chapter underscores the potential for a circular economy in which citrus waste transforms into high-value bioactive products. Optimal extraction conditions were identified, showcasing the potential for high-quality essential oil production. Economic assessments revealed promising prospects for the utilization of these oils in various industries, supporting a sustainable and economically viable circular model. This chapter concludes that the extraction and valorization of bioactive essential oils from citrus fruit waste offer a sustainable solution to the challenges posed by agricultural by-products. The various applications of these oils highlight their potential contributions to various industries, advocating for a paradigm shift toward circular economy principles in the citrus sector. Emphasizing both environmental and economic benefits, this research underscores the importance of holistic resource management for more sustainable future prospects.