The growing importance of reverse logistics in supply chain management has been driven by the rise of e-commerce, increasing return rates, and the urgent need for sustainable practices. With the global reverse logistics market projected to reach USD 958.3 billion by 2028, businesses are turning to advanced technologies to manage returns efficiently, minimize waste, and reduce environmental impact. This paper reviews how technologies like Artificial Intelligence (AI), automation, and smart logistics systems are improving reverse logistics and helping companies build more sustainable supply chains. AI helps businesses predict how many returns they’ll have, manage warehouses better, and track products in real time. In addition to this, technologies like drones, self-driven vehicles, and e-platforms are enabling logistics quick and highly-automated. Along with this circular economy is also get supported by these technologies, which could minimize global waste by 45% among the electronics, textiles, and plastics sectors. The adoption and effective implementation of these technologies in reverse logistics can be evaluated using the Technology Organization Environment (TOE) framework. While the benefits are satisfying, including enhanced operational efficiency, cost reductions and environmental gains along with these, challenges exist, such as cybersecurity risks, high incorporation costs, aligning complexities and the need for skilled personnel. This paper discusses both the opportunities and barriers associated with technology adoption in reverse logistics, guided by the TOE framework, to provide insights for businesses aiming to create more efficient and sustainable supply chains.