With the rise of electronic devices, particularly mobile phones, the e-waste crisis calls for innovative solutions. This study explores the circular economy's potential to revolutionize mobile phone management by analysing extraction techniques, environmental impacts, and material optimization. Embracing a circular economy model, it advocates for resource reuse to reduce waste and promote sustainability. From the results, it concludes that, One ton of recycled mobile phones can yield approximately 150 grams of extracted gold, with recycling costs ranging from ₹5,586.54 to ₹28,014.85 and a recycling time of four to eight weeks for gold extraction. From one ton of recycled mobile phones, approximately 110 kilograms of plastic can be recovered, with recycling costs varying between ₹6,983.18 and ₹27,768.39. The recycling process for plastic typically takes around 20 to 40 days. By reusing and recycling components, the production cost of a new mobile phone can be reduced by approximately 36%, resulting in a new production cost of ₹15,622.51, compared to the original cost of ₹24,271.87. The total cost of recycled and reused components amounts to ₹8,649.36. Recycling one ton of mobile phones yields enough materials to manufacture approximately 4406 new mobile phones, resulting in a potential cost saving of approximately ₹3,80,74,899 for a large-scale production of the same quantity. By adopting this approach and promoting sustainable and ecologically friendly practices in the electronics industry, manufacturers can contribute to societal well-being and mitigate the environmental repercussions of discarded mobile phones.