Both the waste regulation and chemicals regulation of the European Union are based on the precautionary principle. The main objective of the chemicals regulation is to protect human health and the environment from the risk caused by hazardous chemicals. The modern waste regulation aims, among other things, at fostering the recovery of waste. These material circulation aims have been recently emphasised by introducing the ambitious circular economy objectives. Many of the waste streams contain hazardous substances that may pose risks to human health and the environment. This article examines the role of the precautionary principle in the circular economy. We argue that sustainable material circulation can only be achieved through a case-by-case application of the precautionary principle, but this also requires participatory discourse in which competing arguments, beliefs and values are openly discussed.