Globally, food production is increasing, leading to a concomitant rise in food waste (FW) generation, necessitating sustainable management strategies. This review critically examines various methods for converting FW into agricultural fertilizers, addressing the growing demand for sustainable nutrient management. FW, characterized by high moisture content and a diverse organic composition, presents both challenges and opportunities for fertilizer production. The review encompasses thermal methods (pyrolysis, gasification, hydrothermal carbonization, thermal hydrolysis), biological methods (composting, vermicomposting, anaerobic digestion), and innovative approaches such as hydrogel-based fertilizers. Furthermore, the review explores the risks associated with FW-derived fertilizers, focusing on potential contaminants such as microplastics, heavy metals, organic pollutants, and pathogenic microorganisms, alongside strategies for risk mitigation. The analysis highlights the potential of FW valorization to improve soil health, enhance crop yields, and reduce reliance on synthetic fertilizers, contributing to a circular economy. Future research directions are proposed, including optimization of existing technologies, long-term field studies, economic viability assessments, and the development of novel fertilizer formulations combining different processing methods. In conclusion, this review underscores the significant potential of FW as a resource for sustainable fertilizer production, emphasizing the need for continued innovation and rigorous evaluation to ensure its safe and effective application in agriculture.