The objective of this research is to investigate how digital technologies, specifically blockchain, artificial intelligence (AI), and the Internet of Things (IoT), can be integrated into circular supply chains to enhance sustainability and preserve a competitive advantage. The goals of circular supply chains, which are founded on the ideas of the circular economy, are to reduce waste, promote resource regeneration, and lessen their negative effects on the environment. The study highlights the critical role that digital technologies play in guaranteeing transparency, promoting real-time monitoring, and optimizing resource distribution. Blockchain offers traceability and trust, IoT boosts visibility and operational efficiency within supply chains, and AI improves demand forecasting and resource efficiency. Though the benefits are obvious, there are significant obstacles to overcome, including high implementation costs, complex technological issues, scalability issues, and regulatory barriers. The research demonstrates how these digital technologies can effectively promote sustainability while enhancing operational efficiency through case studies of well-known companies like HP, Walmart, and Philips. The report also highlights important future trends and makes suggestions for companies looking to develop their workforces, invest in digital technologies, and work together on circular economy platforms. In the end, digital tool adoption is essential for creating supply chains that are more sustainable and competitive in the modern global economy.