With the development of economy, the packaging industry has become a relatively complete industry. Packaging can not only protect commodities, facilitate circulation, and promote market sales, but it also brings resource and environmental problems to the society. Cities and rural areas generate tons of waste every year, most of which is packaging waste, and it is increasing year by year. With the needs of economic development, the current shortage of resources and the environment are becoming more and more severe. It is urgent to strengthen the management of packaging waste. Based on this, this paper analyzed the regulations and systems of packaging waste management under circular economy. First, at the beginning of the introduction, the background of circular economy was expounded, and academic research on circular economy and packaging waste management was carried out and summarized finally; various algorithms were proposed to provide theoretical basis for packaging waste management. The third part analyzed the regulatory and institutional factors related to packaging waste management under circular economy. Finally, the experimental analysis of the regulations and systems of packaging waste management under the circular economy was carried out, and the experiments were summarized and discussed. The research results showed that the legal system of packaging waste management under the circular economy constructed in this paper increased the effectiveness of sustainable economic development by 7.81%.