Background: The Circular Economy model came as an alternative to the linear “use and dispose” production system. It argues to promote an economic order that can address the waste of aftermarket goods and a more efficient use of resources and raw materials. It further promises economic gains from a more efficient resource management and extended use of products lifecycle, in conjunction with new employment opportunities that arise as a result of new business models and industrial processes. Whilst the Circular Economy is surely a departure from traditional economic systems, there has been not enough debate on the full impacts as well as possible unintended consequences of its implementation.    Purpose: The purpose is to examine the Circular Economy adoption approach in the Jönköping county in Sweden and how this approach contributes to sustainability improvement.  Purpose: The purpose is to examine the Circular Economy adoption approach in the Jönköping county in Sweden and how this approach contributes to sustainability improvement.  Method: This is an exploratory research which is based on a qualitative design with an inductive approach and interpretive paradigm. The research follows a case study of a pilot project to help SMEs in Jönköping county - Sweden, to implement Circular Economy. The primary data is collected through semi-structured interviews with the project coordinators.  Conclusion: The Circular Economy Project in Jönköping takes into consideration all three resource loops on their implementation of CE based on Bocken et al (2016) resource loops. Embedding all three loops in the implementation of CE is a comprehensive and advanced form of circularity. Combined with the project high-level of sustainability awareness and their effort to integrate the social aspect into their Circular Economy, this research has placed the sustainability profile of the Project at the third level of the corporate sustainability stages presented by Landrum (2018), which is systemic sustainability.