Polymer composites are widely used across industries for their superior mechanical, thermal, and functional properties, yet their complex structures pose significant challenges for sustainable recycling and end-of-life management. This chapter explores recent advancements in the sustainable recycling of polymer composites, with emphasis on chemical, mechanical, and emerging green methodologies that improve recyclability without compromising performance. A literature-based comparative analysis of recycling pathways, supported by case studies on thermoplastic and thermoset systems and techno-environmental assessments, forms the methodological foundation. Key findings from recent studies (2020–2025) highlight the effectiveness of hybrid strategies such as catalyst-assisted solvolysis and enzymatic hydrolysis in enhancing monomer recovery and fibre retention. Compatibilization techniques—including PEG incorporation, maleic anhydride grafting, and nanofiller reinforcement—further improve recyclate quality. The discussion addresses trade-offs between energy efficiency, product integrity, and process scalability, and evaluates the potential of green solvents and bio-based reinforcements in achieving circularity. While progress is notable, challenges in regulatory acceptance, economic feasibility, and industrial implementation remain. The chapter concludes with a forward-looking perspective on integrating innovative recycling technologies with sustainable materials design to close the loop on composite waste.