Municipal solid waste compost, the circular economy's closed-loop product often contains excessive amounts of toxic heavy metals, leading to market rejection and disposal as waste material. To address this issue, the study develops a novel approach based on: (i) utilizing plant-based biodegradable chelating agent, l-glutamic acid, N,N-diacetic acid (GLDA) to remediate heavy metals from contaminated MSW compost, (ii) comparative assessment of GLDA removal efficiency at optimal conditions with conventional nonbiodegradable chelator EDTA, and (iii) enhanced pre- and post-leaching to evaluate the mobility, toxicity, and bioavailability of heavy metals. The impact of treatment variables, such as GLDA concentration, pH, and retention time, on the removal of heavy metals was investigated. The process was optimized using response surface methodology to achieve the highest removal effectiveness. The findings indicated that under optimal conditions (GLDA concentration of 150 mM, pH of 2.9, retention time for 120 min), the maximum removal efficiencies were as follows: Cd-90.32%, Cu-81.96%, Pb-91.62%, and Zn-80.34%. This process followed a pseudo-second-order kinetic equation. Following GLDA-assisted leaching, the geochemical fractions were studied and the distribution highlighted Cd, Cu, and Pb's potential remobilization in exchangeable fractions, while Zn displayed integration with the compost matrix. GLDA-assisted leaching and subsequent fractions illustrated transformation and stability. Therefore, this process could be a sustainable alternative for industrial applications (agricultural fertilizers and bioenergy) and social benefits (waste reduction, urban landscaping, and carbon sequestration) as it has controlled environmental footprints. Hence, the proposed remediation strategy, chemically assisted leaching, could be a practical option for extracting heavy metals from MSW compost, thereby boosting circular economy.