This thesis investigates the role of industrial design in promoting sustainability and circular economy principles, particularly through collaboration with PaperShell AB, a company specializing in sustainable composites. The study focuses on developing a circular bio-economy system that integrates local mycelium cultures for material decomposition and soil regeneration. The central research question is: How can industrial design practices evolve to foster ecological regeneration while maintaining economic viability? Key findings emphasize the importance of closing material loops and reimagining industrial processes to harmonize with ecological systems. The Catifa Carta project, a collaboration with the Italian furniture brand Arper, serves as a case study demonstrating the practical application and success of these principles. Future research directions include exploring the scalability of these practices and additional ecological partnerships.