Due　to　alteration　and　degradation　of　the　environment,　governments　and　citizens　of　Beijing　are　gradually　embracing　the　concept　of　sustainable　development.　The　theory　of　circular　economy　is　regarded　as　an　important　way　to　build　a　resource-saving　and　environment-friendly　society,　so　it　becomes　emphasized　by　the　government.　This　paper　presents　an　overview　of　the　current　situation　of　the　circular　economy　in　Beijing,　provides　a　brief　discussion　on　the　future　challenges　and　makes　a　number　of　feasible　suggestions.　In　the　period　of　＂The　Eleventh　Five-Year　Plan＂,　Beijing　attaches　great　importance　to　the　work　of　developing　circular　economy.　It　achieved　a　remarkable　improvement　in　key　indicators　such　as　energy　and　water　consumption,　pollution　emission,　efficiency　of　resources　utilization　and　ecological　indicators.　Industrial　structure,　energy　consumption　structure　and　resource　utilization　are　optimized　to　some　extent,　and　related　support　system　of　circular　economy　is　initially　established.　There　are　still　some　challenges　cannot　be　ignored,　the　shortcomings　and　the　lack　of　technologies,　recycling　systems,　laws,　regulations　and　policies　and　social　awareness　and　participation　are　regarded　to　be　the　major　challenges　in　the　future.　Targeting　the　status　and　challenge　of　the　development　of　circular　economy　in　Beijing,　and　some　suggestions　are　recommended.