Despite its significant contribution to economic growth and industrial development, the steel industry is considered one of the most resource-intensive and environmentally polluting sectors. Smart circular economy, which integrates the principles of the circular economy with Industry 4.0 technologies, aims to reduce resource consumption, promote recycling and material reuse, and enhance sustainability through the application of intelligent technologies. This study was conducted to identify and prioritize the factors influencing the adoption of the Smart Circular Economy strategy in Isfahan steel industry. The research employed a mixed-methods approach (qualitative–quantitative).In the qualitative phase, data were collected through semi-structured interviews with14 academic and industrial experts and analyzed using thematic analysis. In the quantitative phase, a researcher-developed questionnaire was designed based on the findings of the qualitative stage, and the collected data were analyzed using the Fuzzy Cognitive Mapping (FCM) method to determine the causal relationships among the identified factors and assess their levels of influence. The findings revealed that the factors affecting the adoption of the Smart Circular Economy could be classified into57basic themes, 11 organizing themes, and 5 global themes. The FCM analysis indicated that “managerial leadership and persuasion", "policy-making and regulatory facilitation", and “the allocation of financial incentives” are the most influential drivers of Smart Circular Economy adoption in the steel industry. Furthermore, factors such as performance and productivity improvement, organizational culture and attitudes, access to smart tools and data management, ease of technology use and technological capability, workforce knowledge and skills, and trust in intelligent technologies play intermediary and infrastructural roles in the adoption process. In contrast, economic profitability and environmental sustainability were identified primarily as outcomes resulting from the successful implementation and adoption of this strategy.