This article investigates the integration of circular economy methodologies and biorefinery concepts for the sustainable recovery of bio‐based products from industrial effluents, addressing the critical need for resource efficiency and environmental sustainability in the face of climate change and resource depletion. Emphasizing the valorization of industrial by‐products, the study explores innovative, eco‐friendly recovery processes within a biorefinery framework to transform waste into valuable resources such as biofuels, biochemicals, and biomaterials. Through a systematic search in various bibliographic databases and a comprehensive literature review, the study critically analyzes existing studies, identifies research gaps, and offers new perspectives on the integration of biorefinery and circular economy principles. The findings reveal that strategic integration of biorefinery processes and circular economy principles can significantly reduce environmental footprints and foster sustainable industrial practices. Key challenges such as feedstock variability, technological barriers, and economic scalability are identified, along with recommendations for overcoming these obstacles through interdisciplinary collaboration, technological innovation, and supportive policy interventions. The main contribution of this research lies in its comprehensive approach, integrating cutting‐edge technologies and circular economy principles to offer viable strategies for sustainable bio‐based product recovery, thus significantly advancing the field of industrial sustainability. The article contributes to the advancement of sustainable technologies, policies, and strategies, advocating for a transition towards a more circular, resource‐efficient industrial sector. Continued innovation and research are emphasized to optimize recovery processes and explore new applications, supporting a sustainable and thriving future for our planet.