This chapter explores the transition from the traditional linear economy, defined by the ‘take–make–dispose’ model, to a circular economy, with a focus on its application in creating liveable cities. With global material consumption and urbanisation increasing, cities are facing significant challenges, including resource scarcity, environmental degradation, and growing emissions. The circular economy offers a sustainable solution by promoting resource efficiency through recycling, reusing, and regenerating materials. This approach aims to decouple economic growth from resource consumption, enhancing urban resilience and sustainability. The chapter also highlights the role of circular economy practices in improving liveability within cities. By integrating circular principles into areas such as transportation, energy systems, water management, and the built environment, cities can reduce congestion, air pollution, and waste while promoting healthier urban living environments. The 5R framework – reduce, reuse, recycle, restore, and recover – is introduced as a core strategy for embedding circularity into city functions. Additionally, the chapter identifies key enablers, such as government policies, digital technology, and public engagement, that support the circular transition. Through these measures, cities can become sustainable, resilient hubs of innovation and prosperity, balancing economic growth with environmental protection and improving the quality of life for their residents.