As the imperative to mitigate climate-altering emissions and curb natural resources exploitation intensifies, the fields of architecture and industrial design are compelled to explore alternative material practices. This imperative requires a transition from the traditional cradle-to-grave model to a cradle-to-cradle design paradigm, emphasizing upcycling, the process of repurposing waste into higher-value products. However, the definition of “value” in this context remains vague. In this paper, we posit value as an informational shift, denoting the “ecological intelligence” embedded within recycled materials compared to their prior life cycles. Amidst the concurrent ecological and digital transitions, the concept of “Informational Upcycling” (IU) emerges, bridging Circular Economy principles with the creative potential offered by digital technologies and Artificial Intelligence (AI) in architectural and technological design. IU leverages computational methods to address the complexity, non-linearity, and unpredictability inherent in reclaimed materials, which pose challenges to their reuse and upcycling, thereby questioning established design methodologies and tools.This conceptual framework is informed by a case study analysis of international critical research practices and is articulated through a comprehensive digital workflow, pointing out the enabling technologies for IU, with a specific focus on wood waste. Finally, the paper illustrates the application of this theoretical framework through the FoRWARD (Furniture Waste for Circular Design) research project, funded under MICS – NextGenEU, PE11, Spoke 4. Led by the Department of Architecture at the University of Naples “Federico II”, this initiative aims to test this approach within the Italian furniture industry, showcasing practical implementations of IU principles.