A circular linked list is a data structure characterized by a sequence of nodes, where the last node in the list connects back to the first node, forming a closed loop. Unlike a traditional linked list, the tail node in a circular linked list does not have a null pointer, but rather references the head node. This circular arrangement enables efficient traversal starting from any node in a circular manner. Circular linked lists are valuable in scenarios requiring continuous iteration or cyclic access to elements. Implementation can be achieved using either a singly linked list or a doubly linked list with appropriate adjustments to establish circular connections between nodes.