Aromatic plants have been extensively used for their medicinal and culinary properties by the cosmetic, pharmaceutical, and food industries. Along with the prosperous development of the herbal industry, however, enormous amounts of solid biomass have been generated, creating an environmental hazard. Since the waste material generated during harvesting, pre-processing, or extraction may retain its nutritional value, it can be converted to compost or vermicompost. Nonetheless, the addition of herbal residues to the feedstock material may negatively influence biodegradation due to the lower nitrogen content, increased lignocellulose content, and the remaining bioactive compounds. Overall, this book chapter discusses the current challenges that herbal waste composting/vermicomposting faces, provides insights into the process optimisation, and summarises the potential beneficial effects of mature compost.