The inconsistent collection, unregulated disposal, and burning of municipal solid trash on city outskirts pose threats to human health and the environment. Building a vermicomposting composting system in terracotta containers and comparing it to other comparable systems is the focus of this paper. It delves into the significance, advantages, and function of recycling organic waste to encourage a regenerative economy. Compost bins and terracotta containers have been used for both aerobic and vermicomposting of organic waste. Organic waste was aerobically composted in terracotta pots and compost containers. The capacity of compost bins was reduced by 47% and that of terracotta pots by 58% after two months of aerobic composting of Municipal Solid Waste (MSW). The carbon and nitrogen levels of the substrate gradually declined throughout the research period. The organic waste was vermicomposting in terracotta containers that were 60 cm tall and 15 cm in diameter, with the help of earthworms such as Eisenia foetida and Eudrillus eugeniae. The pH, moisture, carbon, and nitrogen levels were carefully tracked during the vermicomposting process. Vermicomposting in terracotta containers reduced the substrate volume by 70% in just two months. Substrate carbon and nitrogen levels dropped steadily over the course of the research. It has been found that aerobic composting of organic waste in terracotta containers is an appropriate choice for domestic composting.