This literature review explores the interplay between leadership paradigms and circular economy (CE) initiatives, emphasizing key concepts, recent developments, and the challenges faced in furthering CE through diverse leadership models. It underscores the pivotal roles of transformational and digital leadership in fostering CE practices. The review identifies existing research gaps and proposes future research trajectoriesto enhance understanding in this domain. The findings highlight the necessity of effective leadership in facilitating sustainable transformations within organizations and the broader economy. Moreover, it calls for increased empirical investigations to evaluate the long-term effects of various leadership styles on CE outcomes. This study contributes to the discourse on sustainable leadership practices, advocating for a more profound examination of how leadership can influence the successful implementation of CE principles.