Ship recycling, commonly referred to as ship dismantling, is an inherently sustainable practice with global implications. It involves the reverse engineering process of disassembling obsolete ships to recover reusable materials in a safe and environmentally friendly manner. Over the past two decades, ships have predominantly been beached in South Asian countries such as Bangladesh, India, China, and Pakistan, allowing local yards to dismantle vessels with moderate preventive measures and substantial manual labor. Ship recycling stands as a significant and environmentally conscious industry, witnessing the annual recycling of approximately 1000 obsolete ships globally. Currently, this industry is predominantly led by three South Asian countries—India, Bangladesh, and Pakistan. In Bangladesh, the industry commenced with the dismantling of stranded ships, evolving into a large and profitable sector that generates substantial employment opportunities for thousands of semi-skilled workers in poverty-prone areas. While the ship recycling industry presents opportunities, it also poses challenges for coastal zone management, encompassing environmental, law enforcement, and worker safety concerns. The surge in demand for ship recycling has prompted increased regulatory scrutiny at both national and international levels. This pressure culminated in the development of the Hong Kong International Convention (HKC) by the IMO in 2009, mandating safety and environmental protection standards at recycling yards. Achieving a perfectly green ship recycling process in line with European standards is inherently costly. However, a viable and almost green ship recycling approach, integrating the current common practice of beaching methods in Asian countries, is entirely feasible. Despite limitations and challenges, the industry significantly contributes to Bangladesh's GDP and the overall socio-economic landscape. Currently, there has been a visible reduction in Bangladesh's market share due to stringent environmental regulations, while competitors have experienced increases. This study represents an analytical effort to evaluate the current global ship recycling scenario, exploring its potential, challenges, and the future trajectory of both local and global ship recycling industries.