The aim of the study is to present the determinants of the potential application of the circular economy model in the food processing sector on the example the dairy industry. The first part of the article analyzes various factors that stimulate and limit the transformation of the dairy industry towards the circular economy. The second part presents the examples of solutions corresponding to the idea of a circular economy that have been implemented or are planned to be implemented in dairy enterprises. This paper is an overview. It uses strategic EU and national documents, literature on the circular economy in agri- -food systems, as well as reports from the trade press presenting specific examples of the implementation of circular economy solutions in dairies. The analysis shows that in the dairy industry there are great opportunities to implement the circular economy model, but it is a complex process under the influence of stimulating and limiting factors. It requires systemic changes at various levels of the economy, significant financial resources, and above all, adaptation investments in the field of innovative technologies, energy systems, and water and wastewater management. Successful activities supporting the transformation towards the circular economy implemented in dairy enterprises include in particular solutions consisting in: reducing the amount of waste produced and reusing it, direct use of by-products, using renewable energy sources (in heating and cooling systems), reducing consumption of water and reusing it, using eco-friendly packaging and sustainable transportation. In conclusion, it should be stated that the actions taken by the food processing sector, including the dairy industry, aimed at transformation towards the circular economy are necessary, especially in the context of the challenges related to the European Green Deal and the Farm to Fork Strategy.