Medical device industry is currently facing significant challenges in transitioning from a linear to a circular economy, particularly for single-use medical devices (SUMDs). This article explores the complexities of material recovery, the impact of sterilization methods on device reusability, and the regulatory and economic barriers that hinder sustainable practices. SUMDs often comprise multi-materials, complicating recycling efforts due to the difficulty in separating these materials. Reusability through the sterilization process can impact the physical and chemical properties of the devices posing challenges to maintaining quality and biocompatibility. Regulatory frameworks that prioritize patient safety over environmental impact further complicate the adoption of circular economy practices. Despite these challenges, there are numerous opportunities for embedding circularity in the medical device industry. Innovations in design and material science, such as modular product assembly, use of biodegradable and recyclable materials, advancement in recycling technologies, establishing of legislative framework, and right-to-repair regulations can improve the sustainability of medical devices.