The rising volume of waste created worldwide due to industrialization and commercial activity necessitates a method of waste management that is both effective and efficient. However, waste management is linked to unsustainable patterns in a linear economic system. On the contrary, a circular economy (CE) is widely perceived to solve various issues, including resource scarcity and long-term economic benefits. Utilizing pyrolysis to convert waste to energy and valuable compounds is a potential method for reducing waste while producing valuable end products. The current article offers a thorough analysis of pyrolysis from a circular economy point of view. First, the nature of pyrolysis is briefly described to understand subsequent concepts better. In the following, the pyrolysis of three types of waste, including tire, plastic, and biomass, is deeply investigated from the CE aspect. Then, the social and environmental impacts of pyrolysis from the life cycle assessment (LCA) perspective in developed and developing countries are scrutinized. In the end, ongoing challenges and suggestions for future research are also discussed. Pyrolysis products have not yet been standardized for trade in the market. However, pyrolysis might be able to close the loop of energy and materials. Also, LCA results revealed that pyrolysis has acceptable environmental impacts and a low global warming potential (GWP).