Circular Business Models (CBMs) have been described by many as the instruments needed to help businesses and industries shift into a circular economy. In recent years, a large number of papers has been published on CBMs which provide insights on the transition towards CBMs but a synthesis of the process of CBM innovation is lacking. Thus, the purpose of this study is to conduct a systematic literature review to increase the understanding of the circular business model innovation process. The literature review gathers current knowledge on the process elements of CBM innovation, and the analysis proceeds to structure these insights into a conceptual framework. To identify the relevant literature for this study on CBMs, we conducted a systematic database search in Scopus with the search string TITLE-ABS-KEY “circular business model”. Limited to articles and reviews, this search provided an initial 317 articles. After reviewing the abstracts, 48 papers that provide insights into the CBM innovation process have been selected for a full-text analysis. The study develops a framework that shows activities and components of the CBM innovation process and provides suggestions for future research. This study contributes to the literature on CE transition and supports the CE-practice of optimizing resource use and eliminating waste. Managers can use this study to guide and evaluate their transition process towards CBMs.