The circular bioeconomy has undoubtedly gained global momentum during the last few years. The bioeconomy envisions "3R", the goal of 3R (Reduce, Recycle, Reuse) is to implement in circular economy preventing excessive and unnecessary wastes. The circular bioeconomy emphasizes the best use of all sorts of available bioresources through the reduction of generated wastes during product formation, recycling of generated wastes, and reuse of valuable by-products and residues. Biotechnology could be useful in utilizing the resources to the optimum and therefore the role of biological agents and bioprocesses is of prime importance. In this review, we highlight the paramount importance of beneficial strains of microorganisms, macro, and microalgae in the bioeconomy. Microorganisms are universally recognized for the notable production of a vast array of secondary metabolites and other functionalities with possible use in various sectors. The application of potential strains in industries and modern agriculture practices could progressively improve the effective yield of food and feed, including fertilization of arid soils, bioconversion of by-products from industrial processes, and agriculture wastes. The valuable properties of specifically selected biological agents typically make them suitable candidates for their efficient contribution to circular bioeconomy without hampering the environment.