As traditional agricultural methods struggle to meet the challenges posed by climate change, soil degradation, and resource scarcity, circular agricultural economy emerges as a transformative approach that enhances resource efficiency and sustainability. This study examines the impact of circular agricultural economy practices on food security in rural areas, with a focus on Khorramabad, Iran. The research analyzes key constructs of the circular agricultural economy, including sustainable agricultural practices, resource management, crop and livestock adaptation, knowledge utilization, and infrastructure improvement. Utilizing a structured questionnaire administered to 296 farmers, the study employs structural equation modeling to evaluate the relationships between these constructs and food security status. To evaluate the food security status of farming households, the Household Food Insecurity Access Scale was employed. Results indicate a significant prevalence of food insecurity, with nearly half of the households (46%) classified as severely food insecure. The findings underscore the potential of circular agricultural economy strategies to improve agricultural productivity, enhance soil health, and empower local economies. Also, the results indicate that the utilization of knowledge and information, along with the adoption of sustainable agricultural practices, are paramount strategies within the circular agricultural economy for enhancing food security in rural areas. The study advocates for targeted policy interventions that foster the adoption of sustainable practices and collaborative efforts among stakeholders to build a resilient and secure food system for rural communities. By integrating circular economy principles, this research contributes valuable insights into promoting food security and sustainability in agricultural systems.