Construction and demolition (C&D) waste is a pressing issue not only in Malaysia, but it is also a worldwide concern including the developed countries as well. C&D waste should be managed throughout the construction cycle. The concept of circular economy (CE) is an emerging notion that has the potential to be utilized as waste minimization approach. This paper aims to assess the potentials of incorporating the CE concept as an approach to minimizing C&D wastes, by developing a CE-based theoretical framework for C&D waste management in Malaysia. In line with this objective, a systematic review has been conducted to determine how CE can be operationalised as a strategy to minimize wastes, while considering it as a key factor for mitigating the environmental impacts. Based on the literature review, a CE-based theoretical framework has been proposed using Malaysia as a case study. The framework has been developed following a three-layer approach namely micro-, meso-, and macro-levels. Waste minimization strategies have been identified for each level taking into account the main stages in the construction industry, i.e., planning, designing, procurement, construction, and demolition. The different stakeholders involved at each stage and their interactions in the stages have also been identified.