The Licorice (Glycyrrhiza glabra) is a perennial herb traditionally valued for its aromatic and therapeutic properties. In recent years, however, growing attention has shifted toward the technical and environmental potential of the plant’s industrial by-products, particularly the fibrous material left after extraction. This review integrates botanical knowledge with engineering and industrial perspectives, highlighting the role of licorice fiber in advancing sustainable innovation. The natural fiber obtained from licorice roots exhibits notable physical and mechanical qualities, including lightness, biodegradability, and compatibility with bio-based polymer matrices. These attributes make it a promising candidate for biocomposites used in green building and other sectors of the circular economy. Developing efficient recovery processes requires collaboration across disciplines, combining expertise in plant science, materials engineering, and industrial technology. The article also examines the economic and regulatory context driving the transition toward more circular and traceable production models. Increasing interest from companies, research institutions, and public bodies in valorizing licorice fiber and its derivatives is opening new market opportunities. Potential applications extend to agroindustry, eco-friendly cosmetics, bioeconomy, and sustainable construction. By linking botanical insights with innovative waste management strategies, licorice emerges as a resource capable of supporting integrated, competitive, and environ-mentally responsible industrial practices.