The agricultural and food system faces challenges from its linear economy, prompting a need for circularity. Insects provide a promising alternative with high productivity, economic advantages, and environmental benefits. However, insect utilization primarily focuses on a limited number of widely distributed species, neglecting the vast diversity of over 2,000 edible insect species with their own drawbacks. Introducing non-native species can disrupt ecosystems and hinder cultural acceptance. Large-scale insect farming overlooks the socio-economic and gender inclusion benefits of small and medium-scale farming, particularly in the global South. To harness insects' ecosystem services and align with sustainable development goals, a comprehensive approach is necessary. Evaluating insect species based on productivity, ecological potential, and contextual factors allows identification of optimal species for specific ecosystem services. This framework facilitates informed decision-making, responsible management, and the transition to circular agricultural and food systems. By promoting local development within planetary boundaries, insect utilization can benefit society while minimizing environmental impact. This approach fosters adaptable, circular, and sustainable agricultural and food systems that effectively tackle real-world challenges.