As cities confront mounting environmental challenges linked to consumption, waste generation, and carbon emissions, the need to redesign urban logistics through circular economy principles has become increasingly urgent. This study investigates the role of extended producer responsibility (EPR) as a strategic policy instrument for enabling circularity in urban environments, with a focus on producer-led waste take-back systems. Drawing on a review of current knowledge, European policy developments, and empirical insights from the battery, waste electrical and electronic equipment (WEEE), and textile sectors, the analysis examines how EPR schemes operate within urban contexts and interact with logistics infrastructures. Key themes include governance models, reverse logistics strategies, system efficiency, and the environmental and economic outcomes of EPR implementation. The findings highlight opportunities to strengthen EPR’s effectiveness through greater integration with local logistics planning, improved data systems, harmonised frameworks across Member States, and incentives for circular product design. The research concludes that well-designed EPR take-back schemes, aligned with urban logistics and supported by inclusive governance can significantly contribute to more circular, efficient, resilient cities.