Abstract: China is one of the world’s foremost producers of cotton and generates vast quantities of cotton stalks as an agricultural byproduct. These stalks represent a highly abundant and renewable resource with significant potential for exploitation across multiple domains owing to their versatile applications and considerable economic value. However, the scientific and rational utilization of cotton stalk resources to achieve efficient resource use, reduce production costs, and promote sustainable agricultural development remains an urgent challenge. Based on statistical data and a literature review, this study analyzes and summarizes the utilization methods and research progress of the five main transformation pathways of cotton stalks in China: fertilization, feed production, energy conversion, substrate preparation, and material utilization. The investigation demonstrates that, in terms of fertilization, cotton stalks can be effectively incorporated into agricultural systems through field-returning techniques, controlled fermentation processes, or high-temperature pyrolysis, all of which contribute to improved soil structure and enhanced nutrient availability. For feed utilization, properly processed cotton stalks show potential as a supplementary feed for ruminant livestock, providing a sustainable alternative to conventional feed materials. When used as a cultivation substrate, cotton stalks exhibit favorable characteristics for supporting plant growth in soilless cultivation systems. Advanced bioconversion methods, including anaerobic digestion and solid-state fermentation, enable the transformation of cotton stalks into renewable energy sources, such as biogas and bioethanol. Furthermore, in industrial raw material applications, cotton stalk serves as a viable feedstock for manufacturing paper products, fiberboard, and similar engineered materials, thereby reducing the dependence on traditional wood resources. However, several challenges hinder the current utilization of cotton stalks, including difficulties in collection and transportation, immature technologies, high costs, incomplete industrial chains, and limited farmer awareness of the economic and ecological benefits of cotton stalk recycling. To address these limitations, this study proposes the implementation of an integrated technology-industry-policy framework. Efficient utilization of cotton stalk resources is promoted by strengthening technology research and development for comprehensive utilization of cotton stalk, optimizing the structure of the industrial chain, and improving policy support. This study provides valuable insights into the current state of cotton stalk utilization and proposes actionable recommendations for optimizing its application, thereby contributing to the long-term sustainability of cotton production systems.