Municipal solid waste (MSW) management has become a major concern for developing countries. The physical and chemical aspects of MSW management and infrastructure need to be analyzed critically to solve the existing socio-economic problem. Currently, MSW production is 2.01 billion tonnes/yr. In developing countries, improper management of MSW poses serious environmental and public health risks. Depending on the socio-economic framework of a country, several MSW management procedures have been established, including landfilling, thermal treatment, and chemical treatment. Most of the MSW produced in underdeveloped and developing countries such as Bangladesh, India, and Pakistan is dumped into open landfills, severely affecting the environment. Waste-to-Energy (WTE) projects based on thermal treatments, e.g., incineration, pyrolysis, and gasification, can be feasible alternatives to conventional technologies. This research has explored a comprehensive method to evaluate MSW characteristics and management strategies from a global and Bangladesh perspective. The benefits, challenges, economic analysis, and comparison of MSW-based WTE projects have been analyzed concisely. Implementing the WTE project in developing countries can reduce unsupervised landfill and greenhouse gas (GHG) emissions. Alternative solutions and innovations have been discussed to overcome the high capital costs and infrastructural deficiencies. By 2050, Bangladesh can establish a total revenue (electricity sales and carbon credit revenue) of USD 751 million per year in Dhaka and Chittagong only. The landfill gas (LFG) recovery, waste recycling. and pyrolysis for energy production, syngas generation, and metal recovery are possible future directions of MSW management. The MSW management scenario in developing countries can be upgraded by improving waste treatment policies and working with government, academicians, and environmentalists together.