This research determined whether addition of β-cyclodextrin (β-CD; 0, 0.15, or 0.25%) improved the two-stage composting of green waste (GW). The following parameters were measured during composting or in the final product: moisture content; volume; biochemical and chemical oxygen demand; humic substances; C/N_solid and C/N_soluble; microbial numbers (culturable bacteria, actinomycetes, and fungi); enzyme activities (pectinase and xylanase); microbial biomass carbon and nitrogen; degradation of organic components; contents of phosphorus (available and total), potassium, sodium, calcium, and magnesium; and toxicity to germinating seeds. The two-stage composting of GW was optimal with the addition of 0.15% β-CD. A mature and stable compost was obtained in only 28 days with the optimized two-stage composting rather than in the 90–270 days typically required for traditional composting.