In spite of the critical environmental impacts of mining and the associated geopolitical supply risk, the strategic importance of rare metal tungsten is escalated by rapid expansions in industrialization, particularly in the ongoing low-carbon/energy era, which requires technologies that allow an economic, social, and ecologically friendly tungsten recovery from primary and secondary resources. The current recycling practices of tungsten carbide (WC)-based scraps have been accepted as economically and partially environmentally beneficial and can promote tungsten closed-loop recycling; however, low functional recycling rates and significant metal losses at varied stages hinder the economic recovery of metals. The current review presents the global situation of tungsten and WC flow with a focus on various sustainable methods to recycle spent tungsten and related metals. A detailed discussion of establishing a highly resilient circular economy with sustainable development goals is highlighted by juxtaposing the philosophy of the circular economy, integrated sustainability, and the metal life cycle approach. The article also discusses Industry 5.0 trends, such as sustainable digitalization and twin transition, to overcome the barriers associated with achieving efficient circular recycling. It is shown that cross-disciplinary methodologies, the integration of diverse technologies (digital/green), and the incorporation of state-of-the-art recycling techniques open up the future potential in the recycling sector.