This paper provides an interdisciplinary overview of nettle bioactive compounds and processing, and ir also explores its role in the circular bioeconomy. Urtica dioica L. is sometimes referred to as a multipurpose herbaceous species that has been used historically in food, textiles, and medicine owing its rich profile of biological compounds. This study synthesizes the recent literature to examine nettle’s applications across various industries, from nutritional supplements to eco-friendly fiber materials. In addition, it highlights nettle’s potential in sustainable production chains, aligning with the EU’s bioeconomy directives. The methods involve a comprehensive literature review and data analysis, with a focus on bioactive compounds and eco-sustainable applications. The results of this review underscore the plant’s unique adaptability to low-input farming and its contributions to reducing resource dependency. The findings position nettle as a valuable resource for sustainable innovation, emphasizing its relevance within circular economic models.