The yellow mealworm, Tenebrio molitor (T. molitor), is increasingly considered a promising protein and lipid source for circular bioeconomy strategies in food and feed. Interest is driven by the need to diversify protein supplies and reduce environmental footprints, but feasibility depends on safety, regulation, and scalable operating conditions. Alongside industrial systems, low-input models adapted to arid conditions have been proposed, yet evidence remains heterogeneous and context-dependent. This review covers developments between 2020 and 2025, a period that coincides with accelerated EU novel food assessments and a rapid expansion of applied research on processing, safety, and valorization, with a focus on scientific progress and regulatory approvals such as those issued by EFSA in Europe. Several new applications have emerged, including enzymatic hydrolysates, lipid recovery, and the extraction of chitosan from exuviae. Uses now span animal nutrition, biodegradable materials, and bioactive food ingredients. Life-cycle assessments often report lower greenhouse gas emissions and land use than conventional livestock, but outcomes are sensitive to energy inputs, feed substrates, and system boundaries. Key constraints include variable frass composition, allergenicity and cross-reactivity risks, regulatory and compliance constraints, and mixed consumer acceptance. For research, priority needs include longer-term safety datasets and field-relevant validation of bioactive claims beyond in vitro assays. For policy and industry, priorities include harmonised criteria for substrate safety and traceability, and transparent supply-chain controls that enable reproducible quality at scale.