In recent years, the circular economy has gained prominence as a means to achieve social and environmental benefits and economic growth simultaneously. The carrying capacity of the Earth is in danger due to recent rates of consumption and pollution. The environment is changing drastically because of the significant increase in trash production and pollution. As a result, waste management programs now heavily emphasize recycling and upcycling to achieve positive environmental effects. The green economy offers a compelling paradigm for creating societies that are more socially inclusive, more resource‐efficient, low carbon, and less harmful to the environment. Industrial design plays a crucial role in advancing the principles of the circular economy by promoting system changes that foster sustainability, optimal resource use, and waste reduction. Industrial design can also promote a green economy by promoting resource recycling. The goal of the study was to inspire greater awareness, advocacy, and action toward building a more environmentally conscious and resource‐efficient society. The study adopted a case study because it is a learning technique in which students can be presented with real‐world business challenges and asked to solve them. The findings indicate that students developed a mindset and transformative shift for the positive environmental change that recycling can bring to the environment by designing circular production and consumption processes that resonate with the principles of the circular economy. Educating future designers about circular principles ensures that a new generation of professionals will drive positive change and preserve the environment for future generations.