Inadequate management of pharmaceutical waste poses significant environmental and human health risks as it contains hazardous substances. Both developed and developing countries face challenges in managing waste generated by pharmaceutical manufacturing, which includes production ingredients such as toxic oncology drugs, antibody-drug conjugates, and steroids, as well as consumer-associated items like syringes, diagnostic reagents, kits, and other medical supplies, and miscellaneous waste. This review assesses current waste management strategies, including incineration, landfilling, waste immobilization, and the use of effluent treatment plants (ETPs) for wastewater treatment. The study also explored emerging technologies like advanced oxidation processes, adsorption techniques, and bioremediation methods, which show promise in improving the treatment of pharmaceutical pollutants. The effectiveness of these methods in mitigating environmental and health hazards is critically assessed, with a particular focus on reducing water contamination and minimizing ecological damage. The novelty of this review lies in its comprehensive analysis of the origins, challenges, and technological solutions for sustainable pharmaceutical waste management. It highlights best practices, identifies knowledge gaps, and proposes future directions for research to address the growing problem of pharmaceutical pollution, emphasizing the need for innovative solutions such as recycling, reusing, and reducing pharmaceutical waste to safeguard public health and environmental integrity. A systematic model of Circular Supply Chain Modeling (CSCM) has been proposed to reduce and manage pharmaceutical waste in the future.