Global warming alerts the ecological system and functions of every element in the business world. Supply chain management is one process where sustainability principles are implemented robustly. This study is an attempt to integrate the circular economy principles in enhancing sustainable supply chain management; it has four objectives to focus on the adoption of circular economy principles, the respective barriers, stakeholders’ engagement level, and finally, the outcome of sustainable practices such as environmental, economic, and social implications. The study is descriptive research, adopting a purposive sampling technique to include the selected group of respondents with a sample size of 250, those who are already processing in the supply chain management activities across the industries located in Chennai. Structural Equation Modeling was used to build the measurement model to establish the connectivity between the circular economy adoption, stakeholders’ engagement and sustainable supply chain management outcomes. The hypothesis was established, and the same was proved through confirmatory factor analysis and standardized model fit. Hence, it was concluded that the circular economy principles and their adoption barriers significantly influence stakeholders’ engagement and the determination of sustainable supply chain management outcomes.