The increased demand for cheap, biodegradable, renewable, and recyclable fibers with exceptional properties positioned jute (Corchorus capsularis L. and Corchorus olitorius L.) in the second place (after cotton) in the natural fiber world market. Multicellular jute fibers are comprised of three main components: cellulose, lignin, and hemicelluloses having a wide variety of functional groups capable of binding different water pollutants. However, such groups are not easily accessible due to the presence of a hydrophobic surface layer (consisting of pectins, waxes, and fats) that could be removed by applying simple alkali and oxidative modifications. Moreover, fibers’ activation using different chemical agents or grafting of functional groups on their surfaces results in enhanced fiber sorption properties, and hence adsorption potential for various water pollutants. This chapter provides an overview of the possibility of the application of raw and chemically modified jute fibers as an eco-friendly adsorbent for heavy metals and dyes as the most frequent water pollutants. Special attention has been paid to the binding mechanism of the pollutants and differently functionalized jute adsorbents. The last section of this chapter represents one step toward both the circular economy approach and sustainable development, in terms of reusing and revalorization of solid waste with adsorbed pollutants. Permanent collection and reuse of pollutant saturated jute adsorbents have promising multi-positive effects on the economy as well environment, including reducing its quantity, saving energy, and its utilization as raw material for producing new hybrid materials which is in line with the Circular Economy Package (2020).