This study explores the transformative potential of digital technologies in fostering a circular economy, using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The research investigates 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, is found to enhance resource efficiency, reduce waste, and promote sustainable economic growth. These technologies enable better tracking and management of resources, facilitating closed-loop systems essential for a circular economy. However, challenges such as data security, the digital divide, and unequal access to advanced technologies are identified, which may hinder equitable distribution of benefits. The study emphasizes the importance of an integrated policy approach combining technological innovation with supportive regulatory frameworks to address these challenges and maximize the benefits of digital integration. Policymakers are encouraged to develop strategies that foster technological advancements while ensuring inclusive access and addressing security issues. The research provides valuable 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 study aims to achieve sustainable development goals and create a resilient economic future.This study explores the transformative potential of digital technologies in fostering a circular economy, using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The research investigates 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, is found to enhance resource efficiency, reduce waste, and promote sustainable economic growth. These technologies enable better tracking and management of resources, facilitating closed-loop systems essential for a circular economy. However, challenges such as data security, the digital divide, and unequal access to advanced technologies are identified, which may hinder equitable distribution of benefits. The study emphasizes the importance of an integrated policy approach combining technological innovation with supportive regulatory frameworks to address these challenges and maximize the benefits of digital integration. Policymakers are encouraged to develop strategies that foster technological advancements while ensuring inclusive access and addressing security issues. The research provides valuable 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 study aims to achieve sustainable development goals and create a resilient economic future.