In the post-COVID scenario, the annual increase in plastic waste has taken an upsurge due to the disposal of plastic masks, gloves and other protective equipment. To reduce the plastic load ending up in landfills and oceans or dumped at roadsides, the potential of using plastic polymers in different sectors has been investigated over the years leading to their potential application in pavement laying, concrete industry, fuel generation and production of carbon-based compounds among which activated carbons (AC) is a prime example. As one of the most rec-ommended adsorbents for removing contaminants from water and adsorbing greenhouse gases, AC creates a potential sector for using discarded plastic to further treat pollutants and approach closer to a circular economy for plastics. This paper analyses the production process, the effect of production parameters on AC characteristics and properties that aid in adsorption. The interdependence of these factors determines the surface area, porosity, relative micropore and mesopore volume, thereby defining the utility for removing contaminant molecules of a particular size. Furthermore, this work discusses the application of AC along with a summary of the earlier works leading to the existing gaps in the research area. Production costs, formation of by-products including toxic substances and adsorbate selectivity are the major issues that have restricted the commercial application of this process towards its practical use. Research aimed at valorization of plastic waste into ACs would minimize the solid waste burden, along with treating other pollutants.