This study investigates the relationship between circular economy practices and sustainable firm performance in green garments in Bangladesh. The research focuses on the environmental, financial, and social dimensions of sustainable performance. A quantitative survey was conducted with 418 managers from green garment organizations in Bangladesh. Data were collected through a structured questionnaire and analyzed using SPSS and PLS-SEM software. The results show a positive relationship between circular economy practices and sustainable firm performance, supporting the hypotheses that circular economy practices positively influence environmental, financial, and social performance. The study highlights the importance of circular economy practices in enhancing sustainability in the garment industry, which is a significant sector in Bangladesh. The findings suggest that implementing circular economy practices can improve environmental performance, financial performance, and social performance in green garment organizations. The study contributes to the understanding of the effectiveness of circular economy practices in addressing environmental issues and provides insights for policymakers and managers in the green garment sector. The research also identifies the need for further investigation into the implementation of circular economy practices in emerging economies. The study's results have implications for sustainable development and environmental protection in the global garment industry.This study investigates the relationship between circular economy practices and sustainable firm performance in green garments in Bangladesh. The research focuses on the environmental, financial, and social dimensions of sustainable performance. A quantitative survey was conducted with 418 managers from green garment organizations in Bangladesh. Data were collected through a structured questionnaire and analyzed using SPSS and PLS-SEM software. The results show a positive relationship between circular economy practices and sustainable firm performance, supporting the hypotheses that circular economy practices positively influence environmental, financial, and social performance. The study highlights the importance of circular economy practices in enhancing sustainability in the garment industry, which is a significant sector in Bangladesh. The findings suggest that implementing circular economy practices can improve environmental performance, financial performance, and social performance in green garment organizations. The study contributes to the understanding of the effectiveness of circular economy practices in addressing environmental issues and provides insights for policymakers and managers in the green garment sector. The research also identifies the need for further investigation into the implementation of circular economy practices in emerging economies. The study's results have implications for sustainable development and environmental protection in the global garment industry.