This systematic review examines the role of the circular economy (CE) in promoting sustainable urban development in Ghanaian cities. Using a Boolean search, 20 peer-reviewed articles, reports, and policy documents were analyzed from Scopus, ScienceDirect, DOAJ, AJOL, and Google Scholar. Grounded in the sustainable city nexus, the review identifies resource efficiency and waste management, renewable energy integration, sustainable urban planning and design, community engagement and education, and green and blue infrastructure as key characteristics of CE in Ghanaian cities. Despite progress, challenges persist, including inadequate infrastructure, low recycling rates, limited public awareness, fragmented governance, and poorly managed end-of-life waste. The review advances a holistic understanding of CE, proposes a framework for policymakers, and highlights opportunities for cross-sector collaboration and context-driven interventions.