Confronted with serious environmental problems caused by the growing mountains of plastic packaging waste, the prevention and control of plastic waste has become a major concern for most countries. In addition to the recycling of plastic wastes, design for recycling can effectively prevent plastic packaging from turning into solid waste at the source. The reasons are that the design for recycling can extend the life cycle of plastic packaging and increase the recycling values of plastic waste; moreover, recycling technologies are helpful for improving the properties of recycled plastics and expanding the application market for recycled materials. This review systematically discussed the present theory, practice, strategies, and methods of design for recycling plastic packaging and extracted valuable advanced design ideas and successful cases. Furthermore, the development status of automatic sorting methods, mechanical recycling of individual and mixed plastic waste, as well as chemical recycling of thermoplastic and thermosetting plastic waste, were comprehensively summarized. The combination of the front-end design for recycling and the back-end recycling technologies can accelerate the transformation of the plastic packaging industry from an unsustainable model to an economic cycle model and then achieve the unity of economic, ecological, and social benefits.