Food waste management is a critical environmental issue in many developing countries, including Bangladesh, due to unplanned food waste disposal and lack of dedicated food waste legislation. In those countries, a significant amount of food waste is discarded to the environment rather than being recycled. In Bangladesh, food waste is traditionally often used for composting, landfilling, and feeding animals, as there is no valorization option. In addition, food waste and food waste streams of food industries are utilized for the recycling and production of diverse economically valuable bioactive compounds. Therefore, we conducted a detailed literature review on food waste management and valorization options in Bangladesh and discussed the findings in the context of global status. The amount of food waste in Bangladesh is quite high, and it needs to be recycled to promote the circular economy of this developing nation. In this study, it is revealed that various research uncertainties and gaps regarding sustainable food waste management exist in Bangladesh, which should be investigated as priority research. Furthermore, a logical and global synchronization of the contemporary approach to food waste valorization with policy advocacy is proposed, to ensure efficient food waste decontamination and recycling in Bangladesh. This is the first and most comprehensive evaluation of the present research trend and prospects for sustainable recycling of food waste for the circular economy of Bangladesh.