The world faces unprecedented environmental crises, including climate change, resource depletion, and biodiversity loss. These crises demand urgent societal and economic transformation, particularly within businesses and economic models. Circular Economy (CE) and Degrowth are two paradigms with significant transformative potential in that aspect; however, their capacity for mutual alignment has yet to be fully explored. This study aims to identify the key principles of both CE and Degrowth and explore their potential for alignment within an integrated business model framework. Literature reviews and expert interviews were conducted to identify the main principles of both paradigms. The data was then indicatively grouped, coded, and conceptualized into a new business model framework. The study reveals that while the key principles of CE and Degrowth overlap only partially, there are no conflicts between the remaining principles that would impede their integration. On the contrary, when combined, CE and Degrowth have the potential to facilitate a valid and viable transition of the current economic paradigm in line with ecological economics and strong sustainability principles.