Plastic waste has become one of the most serious environmental challenges worldwide due to rapid industrialization, urbanization, and excessive use of single-use plastics. Improper disposal of plastic waste leads to land pollution, water contamination, and harmful effects on marine and human life. Effective plastic waste management and innovative recycling technologies are essential to reduce environmental damage and promote sustainable development. Traditional methods such as landfilling and incineration have several environmental limitations, encouraging researchers to focus on advanced recycling methods including mechanical recycling, chemical recycling, pyrolysis, biodegradable plastics, and AI-based waste segregation systems. Recent advancements in smart waste management technologies and circular economy practices have significantly improved recycling efficiency and resource recovery. However, challenges such as high processing costs, contamination of plastic waste, lack of public awareness, and inadequate recycling infrastructure still remain. This review paper presents an overview of plastic waste management systems, modern recycling innovations, challenges, and future directions for sustainable plastic waste handling