Mining activities are notorious for their environmental impact, with acid mine drainage (AMD) being among the most significant issues. Specifically, AMD has recently been a topical issue of prime concern, primarily due to the magnitude of its environmental, ecotoxicological, and socioeconomic impacts. AMD originates from both active and abandoned mines (primarily gold and coal) and is encountered in Canada, China, Russia, South Africa, USA, and other countries with strong mining industries. Owing to its acidity, AMD contains elevated levels of dissolved (toxic) metals, metalloids, rare-earth elements, radionuclides, and sulfates. Practical and cost-effective solutions to prevent its formation are still pending, while for its treatment, active (driven by frequent input of chemicals and energy) or passive (based on oxidation/reduction), technologies are typically employed with the first being more efficient in contaminants removal, however, at the expense of process complexity, cost, and energy consumption. More recently, and under the circular economy concept, hybrid (combination of active and passive technologies) and particularly integrated (sequential or stepwise treatment) systems have been explored for AMD beneficiation and valorisation. These systems are costly to install and operate but are cleaner production systems since they can effectively prevent pollution and can be used for closed-loop and sustainable AMD management (e.g., zero liquid discharge systems). Herein, an insight into the body of knowledge on AMD treatment, beneficiation (metals/minerals recovery), valorisation (water reclamation), and life cycle assessment (LCA), is comprehensively reviewed and discussed with focus placed on circular economy. Future research directions are provided to introduce reuse, recycle, and resource recovery paradigms and inspire innovation in valorising this toxic and hazardous effluent. Overall, AMD beneficiation and valorisation appears promising since the reclaimed water and the recovered minerals/metals could offset the treatment costs and environmental impacts. However, the main challenges include high-cost, complexity, cross-contamination, and the generation of heterogeneous and highly mineralised sludge.