Biocomposites being environmentally-friendly alternative to synthetic composites are gaining increasing demand for various applications. Hence, biocomposite development should be integrated within a circular economy (CE) model to ensure a sustainable production that is simultaneously innocuous towards the environment. This review presents an overview of the state-of-the-art technologies for the adoption of the CE concept in biocomposite development. The study outlined the properties, environmental and economic impacts of biocomposites. A critical review of the life-cycle assessment of biocomposite for evaluating greenhouse gas emissions and carbon footprints was conducted. In addition, the opportunities and challenges pertaining to the implementation of CE have been discussed in detail. Recycling and utilisation of bio-based constituents were identified as the critical factors in embracing CE. Therefore, the development of innovative recycling technologies and an enhanced use of novel biocomposite constituents could lead to a reduction in material waste and environmental footprints. This article is one of the first studies to review the circularity of biocomposites in detail that will stimulate further research in enhancing the sustainability of these polymeric materials.