With the increasing global population and the consequent rise in demand for agricultural products, vast amounts of agricultural waste are being generated, posing a significant environmental challenge. These residues, often regarded as worthless and unusable, are in fact a valuable resource, offering considerable potential for conversion into value-added products. Innovative approaches in microbiology, particularly the microbial degradation of agricultural waste, can effectively mitigate the environmental impacts associated with waste disposal. Such processes transform agricultural leftovers into valuable resources, including compost, biogas, microbial protein, organic acids, and bioplastics. This not only reduces waste volume but also contributes to ecosystem enhancement, playing a vital role in reducing greenhouse gas emissions and mitigating climate change. These approaches can further optimize the use of natural resources and promote sustainable agriculture. This review article examines the role of microorganisms in the recycling of agricultural waste and discusses the economic, social, and environmental benefits of these methods. Additionally, it highlights the substantial potential of agricultural waste recycling as a sustainable solution for the future, which can contribute to realizing a circular economy, enhancing food security, reducing poverty, and decreasing dependence on non-renewable resources.