Cotton is one of the major crops of India and the country occupies first place among cotton growing countries of the world. Cotton stalk is one of the important byproducts of the cotton crop, cotton stalk agricultural waste is a serious environmental issue. The cotton stalk is either abandoned or burned, which results in the formation of toxic gases and ash content, thus contaminating the environment. Composting cotton stalks is an effective method to manage this waste and improve soil health. The management of agricultural and crop residues is an essential component of modern farming and sustainable development. Proper handling, processing, and utilization of waste generated from agricultural activities, including cotton stalks, play a crucial role in reducing environmental impact. Cotton stalks, a major byproduct of cotton cultivation. However, with effective management, they can be converted into valuable resources such as bio-compost for soil enrichment or biofuel for energy production. However, various factors influence the viability and effectiveness of cotton stalk composting. This review article provides a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of cotton stalk compost, discussing its benefits, limitations, potential market opportunities, and challenges. Understanding these aspects can help stakeholders, including farmers, researchers, and policymakers, to make informed decisions about adopting cotton stalk composting as a sustainable agricultural practice.