Agricultural waste, traditionally regarded as a by-product of farming systems, is increasingly recognised as a valuable bioresource with significant potential to support sustainable agriculture and circular bioeconomy transitions. Globally, agricultural activities generate approximately 5–6 billion tonnes of biomass residues annually, yet a substantial proportion remains underutilised or is disposed of through environmentally harmful practices such as open-field burning, leading to nutrient losses, soil degradation and greenhouse gas emissions. This review provides a comprehensive and integrative synthesis of solid agricultural biomass valorisation pathways, focusing on the classification, physicochemical characteristics and resource potential of diverse waste streams, including crop residues, livestock wastes and agro-industrial by-products such as pressmud, bagasse and bone sludge. Major conversion technologies, including biological processes (composting and anaerobic digestion), thermochemical approaches (pyrolysis, gasification and combustion) and integrated biorefinery systems, are critically reviewed. A comparative assessment based on environmental performance, economic feasibility and operational complexity highlights key sustainability trade-offs, particularly regarding soil carbon dynamics, nutrient cycling and competing biomass uses. Biological approaches are suitable for decentralised and low-cost applications, whereas thermochemical and integrated systems offer enhanced energy recovery, scalability and carbon sequestration potential. The review integrates technological, environmental and economic perspectives within a unified analytical framework, with particular emphasis on underutilised agro-industrial residues such as bone sludge. Despite significant advancements, large-scale adoption remains constrained by techno-economic limitations, infrastructural gaps and limited long-term field validation. The study underscores the need for integrated, context-specific and policy-supported strategies to enable efficient biomass utilisation and sustainable resource recovery within circular bioeconomy systems.