This article explores the role of evolutionary economic geography in enhancing understanding and implementation of the circular economy (CE). By incorporating spatial and territorial dimensions into CE research, this study emphasizes the significant influence of geographical factors on achieving economic and environmental objectives. The research highlights the importance of localizing CE practices and emphasizes the contributions of proximity theory and territorial governance in promoting collaborative networks that are crucial for CE success. Furthermore, the article introduces the concept of Territorial Circular Ecosystems, which provides a framework for analyzing regional variations and the interplay between local actors, resources, and institutional support in the deployment of the CE. The findings offer fresh insights for policymakers and researchers, advocating for place-based policies to address CE challenges and optimize sustainability strategies.