Shanghai is a resource deficient metropolitan，the problems of resource requirement and environmental pollution have become increasingly prominent alongside the steady growth of economy，and therefore to develop Circular Economy (CE)has profound signifi cance to solve the contradiction between the environment and development and to enhance the international competitiveness，and is also the only outlet to achieve sustainable development of economy， society and environment. The article puts forward the general thought and achieving ways of the sustainable city in terms of CE in Shanghai according to other countries' patterns of developing CE based on roundly analyzing the necessity and advantage of developing CE in Shanghai.