PurposeWaste generated from electrical and electronic equipment, collectively known as E-waste, remains a persistent environmental, economic and social problem. Sustainable E-waste management (EWM) has numerous benefits, such as preventing electronic waste from entering landfills, reducing the need for virgin materials by recovering valuable materials from recycling and lowering greenhouse gas emissions. Circular economy (CE) practices are considered the initial steps toward sustainable EWM, but some hurdles have been reported in the adoption of these practices. Therefore, the current study aims to identify the common CE practices, sustainability of the EWM process and the challenges in EWM, and to develop a conceptual framework for effective EWM.Design/methodology/approachVery few studies have proposed frameworks that acknowledge the challenges and CE practices of EWM. To fill this gap, a systematic literature review (SLR) was performed, and 169 research articles were explored.FindingsA total of seven challenges in the adoption of effective EWM were identified: rules and policy, infrastructure, consumer behaviour, informal sectors, community culture, technology and economy. Eight common CE practices were also found for effective EWM: reuse, recycle, remanufacturing, refurbishment, repair, reduce, recover and repurpose.Originality/valueA conceptual framework guiding sustainable EWM was proposed, which includes solutions for the identified challenges, and CE practices with sustainable benefits.