The construction industry, a major contributor to global economic growth, faces mounting pressure to address its significant environmental impact, particularly the generation of vast amounts of Construction and Demolition (C&D) waste. This research investigates the feasibility of implementing a circular economy within the construction sector, specifically exploring the role of industrial waste in achieving this goal. Through a comprehensive literature review and empirical analysis, this study examines the key drivers and barriers influencing the adoption of circular economy principles within C&D waste management practices. The findings reveal that economic incentives, robust regulations, and societal awareness are crucial drivers for integrating industrial waste as a valuable resource within construction processes. Conversely, technological limitations, financial constraints, and institutional barriers hinder the effective implementation of these sustainable practices. This research provides valuable insights for policymakers, industry stakeholders, and researchers to develop effective strategies for promoting the circular economy in construction and mitigating the environmental impact of C&D waste. This research explores innovative strategies for overcoming these barriers. These include technological advancements, robust regulations, collaborative initiatives, and stakeholder engagement. These strategies aim to optimize resource use, minimize waste, and establish a closed-loop system in construction. Ultimately, the research provides valuable insights for policymakers, industry stakeholders, and practitioners to enhance sustainable C&D waste management practices. This contributes to a more resilient and environmentally responsible construction sector.