Plastic waste has emerged as a critical environmental and sustainability challenge due to its persistent accumulation, complex degradation pathways, and inadequate waste management systems. This chapter provides an in-depth review of the generation, environmental impacts, and recycling strategies for both synthetic and biobased plastics. It covers the role of key industries, marine and microplastic pollution, and greenhouse gas emissions, and introduces the circular bioeconomy as a sustainable framework. Various recycling technologies are discussed in detail including mechanical, chemical (e.g., glycolysis, acidolysis, solvolysis, hydrolysis, and aminolysis), enzymatic, microbial, and energy recovery techniques. Special focus is placed on recent advances in enzyme engineering (PETase, MHETase) and microbial metabolic pathways to enhance plastic degradation. Challenges such as mixed plastic streams, chemical stability, and inadequate infrastructure are critically analyzed. Furthermore, value-added applications of recycled intermediates, sustainability assessments through life cycle and economic analyses, and evolving global policies (e.g., EU Circular Economy Plan, India’s EPR) are discussed to frame the regulatory and economic context. The chapter concludes with a future outlook on integrating advanced recycling technologies with policy frameworks to drive scalable, sustainable plastic waste valorization.