The persistent usage, build-up, and pollution of plastics jeopardize environmental biotic and abiotic components. Moreover, it exacerbates global warming by augmenting carbon footprints. Plastics offer enormous prospects in terms of circular consumption and recycling. Composting is a natural process that occurs through microbial succession, resulting in the decomposition and stabilization of organic matter found in trash. The use of microbial additions in composting is thought to be highly efficient, as it increases the synthesis of several enzymes, resulting in a faster rate of waste decomposition. Depending on the waste material’s nature, either they can be composted immediately or homogenized before being sent to secondary waste treatment facilities like landfills. Existing waste management practices are not enough to dispose of plastic trash in landfills, wastewater treatment plants, and the environment. Plastic biodegradation under such conditions is a sustainable and environmentally friendly way to address plastic pollution. Natural breakdown of plastics requires methods that use bacteria that can use polymers as their sole carbon source. Protein engineering techniques to enhance the catalytic activity of plastic-degrading enzymes are in their early stages of research. An entirely biological approach to plastic recycling in a sustainable economy is product manufacturing using enzymatic degradation. This book chapter enhances on the studies pertaining to the microbial composting of municipal solid waste and food waste addressing variables that may impede the microbial degradation process and impact the compost quality. And also emphasizes on the ways to improve the sustainable management of plastic waste.