PurposeA digital supply chain (DSC) positively enhances circular economy (CE) practices. However, what factors and conditions lead to the implementation of DSC for transitioning toward CE is not yet clear. Therefore, this study aims at identifying and subsequently analyzing the antecedents of DSC for CE.Design/methodology/approachThe study identifies major antecedents of DSC for CE to achieve sustainability objectives through literature review and expert opinions. In this study, 19 potential antecedents of DSCs for CE are established from the literature and suggestions from industry professionals. A trapezoidal fuzzy Decision-Making Trial and Evaluation Laboratory (DEMATEL) approach is applied quantitatively to investigate the antecedents identified.FindingsConducted in the context of Indian automobile manufacturing industry, the findings of the study reflect that advanced information sharing arrangement, effective government policies for DSC and CE implementation and digitalizing the supply chains are the top three potential antecedents of DSC for a CE.Originality/valueIn the existing literature, few studies are specific to investigating the DSC and CE paradigm. The present study will help organizations develop a practical and integrated strategic approach that will foster DSC through improved knowledge of CE.