District heating (DH) systems play a crucial role in meeting heating demands across the European Union (EU) and Austria, with significant potential for energy efficiency improvements and decarbonization. However, the transition towards climate neutrality by 2040 poses significant challenges, particularly in decarbonizing existing DH systems and integrating renewable energy sources. This work explores the application of absorption technologies, specifically absorption heat exchangers (AHX), absorption chillers (AC), and absorption heat pumps (AHP), in optimizing DH systems. The study investigates the utilization of AHX as transfer substations to increase heat capacity within existing grids by up to 30%, facilitating the integration of renewables and reducing distribution heat losses. Additionally, AC implementation for cooling supply demonstrates efficiency improvements through dynamic operation modes, renewable energy integration, and reduced electricity demand. Furthermore, AHP for waste heat utilization in DH power plants showcases environmental benefits, cost savings, and enhanced energy security. Through detailed techno-economic analyses and case studies, the paper evaluates the viability and economic feasibility of absorption technologies in DH applications. Challenges such as system integration, spatial requirements, and driving energy optimization are addressed, offering insights into overcoming barriers to adoption. Overall, the research highlights the transformative potential of absorption technologies in enhancing the efficiency, sustainability, and resilience of DH systems. By leveraging these technologies, DH operators and stakeholders can navigate the transition towards climate neutrality, while ensuring reliable and cost-effective heating and cooling solutions for urban areas.