Over the past decades, circular economy has established itself as an important strategy for tackling sustainability challenges. Its holistic approach aims to use resources efficiently and minimize waste. This article aims to identify and evaluate the numerous challenges connected to the successful implementation and expansion of the circular economy approach. Economic, technological, social and political aspects are examined to provide a comprehensive insight into the complexity of the strategy and its implementation. The article concludes that a successful circular economy can only be achieved through the coordinated cooperation of different stakeholders and the development of innovative solutions to the identified challenges.