The study aimed to analyze the impact of adopting circular economy strategies on economic growth in Japan during the period from 2000 to 2023, utilizing the Vector Autoregression (VAR) model. The variables under consideration included economic growth rate (GDP), Circular Economy Index (CEI), Green Technology Investments (GTI), and Recycling Rate (RR). The results indicated a statistically significant positive impact of the circular economy on Japan's economic growth. Circular economy practices contributed to enhancing resource efficiency and reducing environmental impact, thereby supporting economic performance. The study also highlighted that investments in green technology and recycling rates were crucial factors in promoting growth, as they improved resource management and fostered innovation in sectors related to the circular economy. Based on these findings, the study recommended the application of circular economy practices in the Arab Republic of Egypt by enhancing investments in green technology and improving recycling systems. This approach could contribute to achieving sustainable economic growth and reducing reliance on non-renewable natural resources. Keywords: Circular economy, Economic growth, Green technology, Recycling, Japan, Environmental sustainability, Vector Autoregression (VAR) model.