Polyvinyl chloride (PVC) recycling poses significant engineering challenges and opportunities, particularly regarding material integrity, energy efficiency, and integration into circular manufacturing systems. This systematic review evaluates recent advancements in mechanical innovations, tooling strategies, and intelligent technologies reshaping PVC recycling. An emphasis is placed on machinery-driven solutions—including high-efficiency shredders, granulators, extrusion moulders, and advanced sorting systems employing hyperspectral imaging and robotics. This review further explores chemical recycling technologies, such as pyrolysis, gasification, and supercritical fluid extraction, for managing contamination and additive removal. The integration of Industry 4.0 technologies, notably digital twins and artificial intelligence, is highlighted for its role in predictive maintenance, real-time quality assurance, and process optimisation. A combined PRISMA approach and ontological mapping are applied to classify technological pathways and lifecycle optimisation strategies. Critical engineering constraints—including thermal degradation, additive leaching, and feedstock heterogeneity—are examined alongside emerging innovations, like additive manufacturing and microwave-assisted depolymerisation, offering scalable, low-emission solutions. Regulatory instruments, such as REACH and Extended Producer Responsibility (EPR), are analysed for their influence on machinery compliance and design standards. Drawing from sustainable manufacturing frameworks, this study also promotes energy efficiency, eco-designs, and modular integration in recycling systems. This paper concludes by proposing a digitally optimized, machinery-integrated recycling model aligned with circular economy principles to support the development of future-ready PVC reprocessing infrastructures. This review serves as a comprehensive resource for researchers, practitioners, and policymakers, advancing sustainable polymer recycling. Keywords: PVC recycling; polyvinyl chloride; digital twin; sustainable manufacturing; circular economy; chemical recycling; mechanical recycling; additive manufacturing; smart tooling; lifecycle optimisation