This study investigates the relationship between circular economy practices and sustainable firm performance in the context of green garments in Bangladesh. The research employs a quantitative survey design with 418 managers from green garment organizations in Bangladesh. The study uses a structured questionnaire to collect data, which is analyzed using SPSS and PLS-SEM software. The findings demonstrate a significant positive relationship between circular economy practices and environmental, financial, and social performance. Specifically, the study shows that circular economy practices have a positive impact on environmental performance (β = 0.278, p < 0.05), financial performance (β = 0.271, p < 0.05), and social performance (β = 0.294, p < 0.05). The results suggest that implementing circular economy practices can enhance the environmental and social sustainability of green garment organizations in Bangladesh. The study also addresses the gap in research on the circular economy in emerging economies and provides valuable insights for policymakers and practitioners in the green garment sector.This study investigates the relationship between circular economy practices and sustainable firm performance in the context of green garments in Bangladesh. The research employs a quantitative survey design with 418 managers from green garment organizations in Bangladesh. The study uses a structured questionnaire to collect data, which is analyzed using SPSS and PLS-SEM software. The findings demonstrate a significant positive relationship between circular economy practices and environmental, financial, and social performance. Specifically, the study shows that circular economy practices have a positive impact on environmental performance (β = 0.278, p < 0.05), financial performance (β = 0.271, p < 0.05), and social performance (β = 0.294, p < 0.05). The results suggest that implementing circular economy practices can enhance the environmental and social sustainability of green garment organizations in Bangladesh. The study also addresses the gap in research on the circular economy in emerging economies and provides valuable insights for policymakers and practitioners in the green garment sector.