This thesis explores the principles of circular economy in production test environment, aiming to enhance sustainability without sacrificing product quality. Focusing on Printed Circuit Board Assembly (PCBA) testing, the study investigates four key areas: modular and reusable Bed-of-Nails (BoN) fixture designs; dynamic power management using smart relays; alternative test methodologies; and test point optimization based on schematic analysis and historical failure data. Through a detailed review of eight commercial PCBA designs and associated yield records, the research demonstrates that approximately 30% of existing test points can be removed without diminishing diagnostic effectiveness resulting in simpler fixtures and shorter test cycles. Modular fixtures present advantages in terms of material efficiency and reusability. However, their adoption within Electronics Manufacturing Services (EMS) is limited by the high initial engineering requirements, lack of standardized interfaces, and the necessity for operator training. Although smart relay based power gating is technically implementable, it offers limited economic incentives under prevailing energy rates. Similarly, Boundary Scan and Flying Probe Testing provide valuable flexibility for small-batch and prototype testing but cannot match the throughput of optimized fixture-based methods in high-volume production. Based on the research outcomes, this thesis proposes actionable engineering strategies, including the prioritization of test points, the standardization of modular fixture designs, and the implementation of targeted power management approaches aimed at embedding circular economy concepts into end-of-line testing processes. By doing so, it advances UN Sustainable Development Goal 12.5, driving down electronic waste, preserving valuable resources, and strengthening the durability of test-system infrastructure.