In a modern world where the society`s desires are unlimited but planet`s resources are limited it is crucial to be aware of the ongoing processes and to understand that each action taken by societal members has an impact on environment. At the moment world is witnessing environmental crisis related to climate change, loss of biodiversity, deforestation, air, water and soil pollution, ozone depletion, etc. Therefore, ‘business as usual’ development trajectories are not tolerable and drastic changes have to be introduced. A promising concept in scientific environment is circular economy, which is aimed to replace the existing ‘take-make-dispose’ approach of linear economy and to conserve the resources for future generations. Authors used literature review to explore the fundamentals of circular economy and related concepts which can contribute to creation of more sustainable world. Results show that reducing, reusing and recycling practices and efficient waste management strategies are the driving forces of circular economy. Additionally, it should be stated that systemic changes supported by circular design and business models are required to bring the concept to real life. Such related concepts as Cradle to Cradle, Sharing Economy, Performance Economy, Biomimicry, Natural Capitalism, Industrial Ecology and Blue economy also have a great potential to ensure planet`s sustainability. However, the greatest barriers are societal ones which are linked to high resistance towards change.