The paper discusses the relevance of the Circular Economy (CE) as a solution for environmental challenges faced by various stakeholders in Cambodia, particularly in light of its reliance on resource extraction and export-oriented industries, leading to significant waste generation and pollution. The government’s recent commitment to sustainable development, incorporating CE principles into national policy, is highlighted. The paper analyses the country’s current environmental issues, evaluates the CE Strategy and Action Plan, identifies potential barriers, explores international collaboration prospects, and offers implementation recommendations. Despite acknowledged hurdles, the paper concludes that CE has the potential to bring socio-economic benefits to Cambodia, including job creation, resilience, reduced reliance on imports, and improved public health. The work is a valuable resource for foreign investors, academia, and policymakers, potentially representing the first comprehensive study on this subject.