Self-healing (bio)materials represent a cornerstone in the transition towards a circular economy in healthcare. These materials possess the remarkable ability to autonomously repair damage, thereby extending the lifespan of medical devices, implants, sensors, wound dressings, and drug delivery systems. By extending the lifespan of biomedical products, they can significantly reduce waste generation and minimize the environmental impact associated with frequent replacements. In addition, the integration of self-healing properties into drug delivery systems can enhance their efficacy and reduce the need for frequent administration, resulting in a more sustainable healthcare system. Notably, self-healing polymers and hydrogels has the potential to improve the durability and lifespan of wound dressings, providing extended protection and support throughout the healing process. The development and implementation of self-healing biomaterials signify a shift towards a more environmentally conscious and resource-efficient healthcare sector. By adopting a circular approach, healthcare facilities can optimize the use of resources throughout the product lifecycle. This includes designing medical devices with self-healing capabilities, implementing efficient recycling systems, and promoting the development of new materials from recycled sources. Such an approach not only reduces the environmental footprint of the healthcare sector but also contributes to a more sustainable and resilient supply chain. The adoption of self-healing (bio)materials offers numerous benefits for the healthcare industry. These materials not only can reduce the environmental impact of medical practices by extending the lifecycle of products but also enhance patient safety and treatment outcomes. The integration of self-healing materials in the healthcare industry holds promise for supporting a more circular economy by extending product lifespan, reducing waste generation, and fostering sustainable practices in medical settings. However, additional explorations are warranted to optimize the performance and stability of self-healing (bio)materials, ensuring their long-term effectiveness. One of the primary challenges in the adoption of self-healing materials is the cost associated with their production. Notably, the exploration of specific self-healing mechanisms will be crucial in expanding their applications. This review examines the intersection of self-healing materials, biomedicine, and the circular economy, focusing on the challenges, advantages, and future perspectives associated with their implementation.