This study investigates the transformative potential of digital technologies in advancing the principles of a circular economy. Using the SmartPLS methodology, the research explores key determinants that drive the transition towards a sustainable economic framework and assesses their impacts on environmental sustainability and economic resilience. The integration of digital technologies such as IoT, blockchain, and AI within circular economy practices significantly enhances resource efficiency, reduces waste, and promotes sustainable economic growth. These technologies enable better tracking and management of resources, facilitating closed-loop systems essential for a circular economy. However, the study also identifies challenges such as data security concerns, the digital divide, and unequal access to advanced technologies, which may hinder equitable benefit distribution. The research underscores the importance of an integrated policy approach combining technological innovation with supportive regulatory frameworks to address these challenges. Policymakers are encouraged to develop strategies that foster technological advancements while ensuring inclusive access and addressing security issues. The study provides comprehensive insights for stakeholders, including governments, businesses, and academia, in designing effective strategies and policies to promote a sustainable circular economy in the digital era. By aligning digital advancements with circular economy principles, the research aims to contribute to achieving sustainable development goals and creating a resilient economic future. The study employs the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique to analyze the relationships between various constructs, including technological infrastructure, knowledge sharing, organizational culture, resource efficiency, and market demand. The results demonstrate significant path coefficients and high R-squared values, indicating strong relationships and explanatory power of the model. The findings highlight the critical role of digital technologies in fostering a sustainable circular economy, particularly through improved resource management and market responsiveness. The study also confirms the reliability and validity of the measurement model, providing valuable insights for policymakers and business leaders in designing strategies to integrate digital technologies effectively into circular economy practices. Future research is recommended to explore the impact of emerging digital technologies such as blockchain and artificial intelligence on circular economy practices, as well as to expand the sample size and include diverse industries and geographical regions to enhance the generalizability of the findings.This study investigates the transformative potential of digital technologies in advancing the principles of a circular economy. Using the SmartPLS methodology, the research explores key determinants that drive the transition towards a sustainable economic framework and assesses their impacts on environmental sustainability and economic resilience. The integration of digital technologies such as IoT, blockchain, and AI within circular economy practices significantly enhances resource efficiency, reduces waste, and promotes sustainable economic growth. These technologies enable better tracking and management of resources, facilitating closed-loop systems essential for a circular economy. However, the study also identifies challenges such as data security concerns, the digital divide, and unequal access to advanced technologies, which may hinder equitable benefit distribution. The research underscores the importance of an integrated policy approach combining technological innovation with supportive regulatory frameworks to address these challenges. Policymakers are encouraged to develop strategies that foster technological advancements while ensuring inclusive access and addressing security issues. The study provides comprehensive insights for stakeholders, including governments, businesses, and academia, in designing effective strategies and policies to promote a sustainable circular economy in the digital era. By aligning digital advancements with circular economy principles, the research aims to contribute to achieving sustainable development goals and creating a resilient economic future. The study employs the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique to analyze the relationships between various constructs, including technological infrastructure, knowledge sharing, organizational culture, resource efficiency, and market demand. The results demonstrate significant path coefficients and high R-squared values, indicating strong relationships and explanatory power of the model. The findings highlight the critical role of digital technologies in fostering a sustainable circular economy, particularly through improved resource management and market responsiveness. The study also confirms the reliability and validity of the measurement model, providing valuable insights for policymakers and business leaders in designing strategies to integrate digital technologies effectively into circular economy practices. Future research is recommended to explore the impact of emerging digital technologies such as blockchain and artificial intelligence on circular economy practices, as well as to expand the sample size and include diverse industries and geographical regions to enhance the generalizability of the findings.