This review aims to streamline the approach to assessing the most used valorization methods for fruit and vegetable waste (FVW) that are eco-friendly, cost-effective, and sustainable within a circular economy framework. Green processing technologies for the extraction of bioactive compounds from FVW, their applications, and the technico-economical assessment of FVW’ biorefinery to support circular economy are highlighted. Important value-added products generated by FVW include bioactive compounds, pectin, protein isolates, such as soy, natural pigments such as anthocyanins, quinones, carotenoids, betalains, and chlorophyll. At this time, the prospects of using FVW have increased in the food supplements, bioactive and edible food packaging, agriculture, energy, and water purification fields. The findings report that proper management of FVW not only minimizes their addition to landfills in the absence of composting, but also promotes the efficient utilization of resources for the development of innovative materials with a wide range of beneficial applications. Implementing the possible solutions described in this paper would not only reduce environmental impact, but also open up new economic opportunities through the valorization of FVW.