The rapid increase in satellite launches, with over 2,600 sent annually, is filling Earth's orbit with dangerous space debris, endangering satellites and leading to a potential "tragedy of the commons" in space. This unsustainable practice necessitates a shift from a "linear space economy" to a "circular space economy," emphasizing recycling, reusing, and efficient management of space resources. Current space practices contribute significantly to environmental degradation on Earth, highlighting the need for technological innovations and legal reforms to encourage sustainable satellite operations and debris mitigation. International cooperation and policy development are critical for preventing space from becoming unusable, fostering sustainable space exploration, and preserving this domain for future generations.