Construction and demolition waste (CDW) accounts for at least 30% of the total solid waste produced around the world. At around 924 million tons in the European Union in 2016 and 2.36 billion tons in China in 2018, the amount is expected to increase over the next few years. Dumping these wastes in sanitary landfills has always been the traditional approach to waste management but this will not be feasible in the years to come. To significantly reduce or eliminate the amount of CDW being dumped, circular economy is a possible solution to the increasing amounts of CDW. Circular economy is an economic system based on business models which replaces the end-of-life concept with reducing, reusing, recycling, and recovering materials. This paper discusses circular economy (CE) frameworks—specifically material recovery and production highlighting the reuse and recycling of CDW and reprocessing into new construction applications. Likewise, a literature review into recent studies of reuse and recycling of CDW and its feasibility is also discussed to possibly prove the effectivity of CE in reducing CDW. Findings such as effectivity of recycling CDW into new construction applications and its limitations in effective usage are discussed and research gaps such as reuse of construction materials are also undertaken. CE and recycling were also found to be emerging topics. Observed trends in published articles as well as the use of latent Dirichlet allocation in creating topic models have shown a rising awareness and increasing research in CE which focuses on recycling and reusing CDW.