A circular economy is a production process in which production is carried out using less raw materials and energy. In a circular economy, the production process repeats itself in a cycle. The circular economy process starts with the use of waste instead of purchasing raw materials. The process then continues with product design, production, consumption and waste for waste utilization. In terms of protecting resources and transferring them to future generations, the circular economy overlaps with Islam's understanding of values. In this direction, Islamic finance has great potential in changing economic understanding with its ethical values. In addition, circular economy is an extremely important area for economies experiencing serious resource scarcity. With great potential for sustainability and efficient use of limited resources, the circular economy has an important place in the realization of development goals. In this context, the study offers an interdisciplinary approach by highlighting the commonalities of circular economy and Islamic finance in efforts to provide a valuable and effective alternative economic framework. In addition, the study aims to analyze the role of participation banks in order to reveal the circular economy themes that participation banks include in their sustainability reports and what role they play in the design of sustainable value chains. In this direction, the sustainability reports of participation banks operating in Turkey were analyzed using the content analysis method and then a thematic comparison analysis was conducted. According to the results of the analysis, participation banks contribute to the circular economy through various sub-themes such as waste management, energy use, water consumption, digitalization and emission reduction. In addition, it is seen that the participation banks analyzed have adopted different strategies for the circular economy.