Coastal areas are overwhelmingly rich in resources and support the livelihoods of the local communities. Coastal mangrove ecosystem provides a wide range of goods and services for human needs and wellbeing. To value conservation benefits of 252.29 ha extent of Kundapura mangrove ecosystem's goods and services, an economic valuation study was conducted using Systems of Environmental Economics Accounting (SEEA) framework. In total, seven ecosystem benefits were identified under provisioning, regulating and cultural services categories of SEEA. Identified baskets of benefits are fisheries, timber, fuelwood, protection against storms and floods, water quality maintenance, carbon sequestration, recreation and tourism. Out of seven benefits, the present study has found that the disturbance regulation benefit's contribution, which is about 92.65% of overall benefits with its economic value, US$1.786 million per year (17.86 lakh). Disturbance regulation benefit has significant role in reducing the impact of vulnerability from coastal hazards and sheltering 4354 individuals of population occupying 1088 houses. Despite that fact, Kundapura mangrove's assets are being degraded by various negative externalities. Particularly reclamation for aquaculture purpose and consequent discharging of the effluents, and dumping of sludge and municipal solid wastes (MSWs). These externalities would exacerbate the environmental problems and impacts on the flow of benefits. Hence, circular economic approach as pioneering to renovate the current linear system into circular one through 3R's strategy (reduce, reuse, and recycle) in the process of production, distribution, and consumption of ecosystem goods and services. This research paper explains about the application of circular economic approach in conservation management by assessing economic valuation of Kundapura mangrove's specific services. This approach is expected to finally result in aiding decision‐making process to limit the quantity of polluting residuals and control the degradation activities thereby sustain the mangroves in good health. Further the regeneration and expansion of mangrove extent would improve the mangrove‐dependent fishery, promote sustainable tourism, and maximize the coastal protection and economic benefits in this region. This will go a long way in sustaining the health of the otherwise fragile mangrove ecosystem of Kundapura coastal stretch, which is under the category of Critically Vulnerable Coastal Areas (CCVAs), identified under CRZ of India.