Polyhydroxyalkanoate　(PHA)　is　a　biodegradable　biopolymer　synthesized　from　renewable　resources,　providing　sustainable　and　eco-friendly　plastics.　The　utilization　of　activated　sludge　for　PHA　production　has　gained　prominence　due　to　its　cost-effectiveness　and　abundant　availability.　Upscaling　PHA　production　from　activated　sludge　can　contribute　to　waste　management　and　resource　recovery　simultaneously,　thereby　reducing　the　dependence　on　petroleum-based　plastics.　This　review　critically　examines　the　progress　and　challenges　in　this　field,　while　offering　valuable　insights　into　strategies　for　enhancing　productivity,　improving　product　quality,　and　reducing　costs.　The　analysis　primarily　focuses　on　identifying　key　factors　influencing　each　stage　of　the　three-stage　process　aimed　at　increasing　productivity.　Noteworthy　strategies　proposed　include　optimizing　the　enrichment　process　and　feast/　famine　ratio.　For　high-quality　PHA,　the　emphasis　is　on　oriented　acid　production,　and　the　selection　of　appropriate　extraction　methods　is　crucial.　The　review　also　addresses　cost　reduction,　discussing　the　simplification　of　the　process　through　the　two-stage　process,　and　integration　of　nitrogen　removal　with　PHA　production.　Future　research　directions　are　outlined,　highlighting　the　optimization　of　PHA　quality,　scalability　of　production,　development　of　efficient　extraction　methods,　assessment　of　environmental　impacts,　and　alignment　with　policy　measures.　Conclusively,　activated　sludge-based　PHA　production　shows　great　promise　and　necessitates　further　research　and　development　for　industrialization.