Waste-to-energy (WtE) technologies offer a promising solution to issues in solid waste management and energy sustainability. These technologies play a key role in a circular economy by converting non-recyclable waste into usable electricity, heat, and biofuels. Despite the benefits, its widespread adoption, particularly in developing countries, is challenged by several factors. This review analyzes the socio-economic and environmental impacts on the acceptability of WtE technologies. The initial search from Scopus identified 1533 unique documents, and the refinement resulted in 292 records for data analysis. Applying a systematic literature review, the analysis revealed a mixed public perception due to the perceived environmental and health risks, government and private project implementer transparency, public attitudes, and the not-in-my-backyard (NIMBY) effect. While they can cause economic disruptions in tourism, agriculture, and small businesses due to industrial expansion, communities can benefit from the creation of job opportunities, the building of public infrastructures, tipping fees, increased economic activities, and reduced costs for solid waste management using alternative solutions. Compared to landfilling, WtE’s environmental impacts are reduced air pollutants and greenhouse gas (GHG) emissions relative to landfilling, conservation of ecosystems and biodiversity, water contamination risks, land use, and soil quality issues. Among the WtE technologies, anaerobic digestion (AD) is the most acceptable, incineration is the most economically feasible, followed by pyrolysis and gasification, while AD, pyrolysis, and gasification have low environmental impacts. The interrelated factors revealed the interaction of the perceived socioeconomic and environmental impacts on the social acceptability of WtE technologies. The findings provide recommendations for future research as well as policies supporting the adoption of WtE as a circular economy technology for more sustainable and inclusive communities.