The construction industry is one of the largest contributors to global economic development and infrastructure growth. However, construction and demolition activities generate enormous quantities of waste materials that significantly impact environmental sustainability, natural resource consumption, and landfill capacity. Construction and Demolition (C&D) waste includes concrete, bricks, wood, steel, glass, plastics, asphalt, gypsum, and other debris generated during construction, renovation, maintenance, and demolition processes. Improper disposal of C&D waste contributes to environmental pollution, greenhouse gas emissions, land degradation, and resource depletion. Construction and demolition waste recycling has emerged as a sustainable waste management approach aimed at reducing environmental impacts, conserving natural resources, improving economic efficiency, and supporting circular economy principles. This article presents a comprehensive review of construction and demolition waste recycling, including waste generation sources, recycling techniques, material recovery methods, sustainable construction practices, technological advancements, and environmental benefits. The study examines recycling applications in infrastructure development, waste management policies, and smart waste management systems. The findings indicate that effective recycling of C&D waste significantly reduces landfill burden, conserves raw materials, lowers construction costs, and enhances environmental sustainability. The article also discusses implementation challenges, regulatory frameworks, and future trends in sustainable construction waste management systems.