Tobacco (Nicotiana tabacum) cultivation generates millions of tons of stalk waste annually. This review explores the potential of tobacco stalks as a renewable resource, emphasizing sustainable applications within a circular economy framework, and highlights the key innovative advances. Composting and biochar production from tobacco residues can substantially enhance soil structure, nutrient availability, microbial activity, and heavy metal immobilization, supporting soil restoration and climate-smart agriculture. With 30–36% cellulose and moderate lignin contents, stalks can be converted into bioenergy, biogas, compost, and biopesticides and enable the production of cellulose derivatives. Despite promising results, challenges remain in nicotine detoxification, process optimization, and industrial scalability. Future research should focus on integrated technologies and life-cycle assessments to fully realize the environmental and economic benefits of tobacco waste valorization.