This chapter explores the application of circular economy principles to enhance resource efficiency and improve waste management practices within the construction industry. It highlights the transformative potential of circular approaches such as material reuse, recycling, modular construction, and adaptive design for disassembly, which significantly mitigate waste generation and environmental impact. The role of digitalization, including building information modelling, digital product passports, blockchain technology, robotics, and artificial intelligence, is examined as crucial to optimizing resource management and supporting sustainable construction practices. Additionally, the chapter emphasizes the importance of policy frameworks, regulatory standards, sustainability certifications, and collaborative stakeholder engagement, particularly industry-academia partnerships, in successfully implementing circular economy strategies. Finally, it identifies future research directions and practical implications that can drive continued innovation and widespread adoption of sustainable practices, ultimately positioning the construction sector as a leader in global sustainability efforts.