Municipal solid waste (MSW) consists of the waste obtained from various sources like households, industries, municipalities and other commercial areas. Common landfill and incineration strategies are insufficient to process the waste generated on daily basis. Municipal solid waste contains significant amounts of organic carbon (50–60%) that has great potential for the production of fuels and value‐added products. This review discusses the composition of the organic fraction of municipal solid waste (OFMSW) and waste processing strategies that enable organic carbon recovery compared with conventional methods. Changes in the composition of MSW worldwide and the factors influencing it in various regions are discussed in this study. The processing of diverse OFMSW through thermochemical methods such as incineration, gasification, pyrolysis, torrefaction and hydrothermal carbonization is discussed here with the results of densification or gasification of the organic carbon, enabling its chemical transformation. Additionally, the combined methods, where OFMSW is pre‐treated followed by enzymatic hydrolysis for the conversion of OFMSW to monomeric sugars have also been described. Globally, to ensure sustainable solid waste management and efficient carbon recycling, combined methodologies seem more appropriate. The study also attempts to list the different attempts across the globe that highlight this concept of the transformation of waste into materials and chemicals, improving its commercial value. The commercial success of such OFMSW processing attempts can provide momentum for establishing sustainable treatment technologies and reaping profits, laying the groundwork for a strong and complete carbon‐recycling environment and circular carbon‐based economy. © 2022 Society of Chemical Industry and John Wiley & Sons, Ltd