Digital transformation has reshaped the manufacturing sector, driving innovation and new business models. Simultaneously, sustainability pressures and stricter regulations push companies to adopt circular economy (CE) principles, focusing on reducing, reusing, and recycling materials. This transition requires adapting business models, product design, and management while integrating processes such as reverse logistics. Digital technologies play a crucial role by enabling data generation, processing, and analysis, optimizing production, and reducing resource use. However, many companies face knowledge gaps regarding how to implement these technologies effectively for CE. This study addresses these challenges through a systematic literature review, offering a framework that links digital technologies to CE principles, focusing on slowing, narrowing, and closing material loops.