Plastics play a pervasive role in contemporary society and serve a wide range of purposes. However, widespread accumulation of plastic waste has become a serious environmental concern. Traditional disposal techniques, such as incineration and landfill disposal, have exacerbated ecological problems, including air, water, and soil pollution. A crucial strategy for promoting sustainability is the adoption of biodegradable plastics as green alternatives to traditional plastics along with the implementation of mechanical and chemical recycling approaches. However, the recycling of biodegradable plastics remains understudied because of prevalent biases and misconceptions. This review aims to address this knowledge gap by assessing common misconceptions regarding biodegradable plastics and emphasizing the merits of their recyclability. Furthermore, this review explores the trends and methods for chemically recycling biodegradable plastics and highlights innovative practices. It endeavors to show that the environmental impact of accidental spills can be minimized by transitioning from a linear economy—focused on the disposal of biodegradable plastics—to a circular economy that emphasizes sustainable chemical recycling. The structural properties of biodegradable materials require less activation energy for decomposition than conventional plastics, facilitating effective chemical recycling. This review highlights the need to develop advanced recycling technologies and encourage further research and societal action to support the transition to a circular economy.