Globalization and industrialization have significantly impacted the dynamics of waste generation, management, collection, and processing, resulting in increasing amounts of various types of waste and serious environmental challenges. This paper analyzes the treatment and recycling of construction waste through the legislative framework and presents key challenges in the implementation of green policies in the Republic of Croatia. The methodological framework is based on a qualitative analysis of normative acts at the national level. Through statistical analysis and a detailed review of the waste categorization process, including the origin, type, and properties of waste, as well as statistical data on the produced, collected, and utilized amounts of construction waste in 2022, an insight into the current state of the construction waste management sector is provided. The example of the company “Reciklaža Mišić” demonstrates how recovered construction waste can lose its waste status and be used as recycled aggregate if the assessment and verification of the constancy of performance are carried out according to the technical specification aligned with the legal regulations governing construction products. The research results indicate the need for further familiarization of the construction sector with the procedure for removing waste status so that recycled aggregates can become a construction product and ensure market placement of materials, thereby contributing to the circular economy and reducing environmental burden. In conclusion, the research shows that achieving sustainable construction waste management requires further strengthening of the economic sector, better integration of ecological principles, and active involvement of the local community in the waste management process.