Vermicomposting is an environmentally friendly system of waste management through which earthworms process organic waste into compost containing nutrients inherent in the worms’ abilities. It combats many environmental issues the world faces today by reducing the emission of greenhouse gases and soil and water pollution and also reducing the amount of organic waste thrown in the landfills. Organic wastes are efficiently broken down by earthworms making composting quicker. Vermicompost has good qualities for adding to horticulture and agriculture because it contains plenty of organic material, beneficial microorganisms, and useful minerals. This chapter provides an overview of the concepts, steps, and benefits of vermicomposting with a focus on the potential application of this technology in sustainable waste management. With a view of enhancing efficiency, some of the vital areas, such as selecting appropriate earthworm species, the suitable environmental conditions favorable for earthworms, and composting substrates, are discussed comprehensively. Besides, the chapter also discusses how resource recovery and contributing to the enhancement of the soil quality illustrate the economic and environmental advantages of vermicomposting.