In recent years, the focus on sustainable development and circular economy principles has spurred a re-evaluation of agricultural byproducts which are traditionally considered as waste. In this context, Carica papaya, a widely cultivated tropical fruit, generates significant amounts of waste in the form of seeds, peels, leaves, and latex during its production and processing. Bibliometrically, these byproducts hold extreme significance. Leaves have promising benefits, addressing protein deficiencies via the production of single-cell protein; extraction of pectin from papaya peel is the highlight for food processing and treatment of wastewater. Moreover, the components of papaya facilitate nanoparticle synthesis, showing promising results in environmental remediation and crop protection as well as medical advancements. Papaya byproducts are rich in bioactive compounds like polyphenols and flavonoids, known for their antioxidant, anti-inflammatory, and antibacterial properties, making them ideal candidates for use in functional foods, dietary supplements, and natural skincare formulations. Combining the findings of diverse studies, the current review highlights the need to establish a value chain for papaya and its byproducts, aligning them with circular economy principles and sustainable development growth.