This paper draws on material entropy and life cycle thinking to develop the Resource States framework. This framework clarifies and systematises the language around resources within the circular economy (CE) discourse, such that insights from different tools and approaches that investigate different aspects of CE can be aggregated and a more comprehensive picture of complex circular systems can be compiled. Currently, progress of the CE discourse is hampered by a lack of a clear and systematic approach to what we refer to as the particle state and the product state. That is: whether to approach resource circulation from the perspective of elements, molecules or materials; or whether to adopt the perspective of products or finished goods. As these two perspectives are often implicit in current contributions to CE, we first articulate both approaches, before assessing their respective contributions and limitations. Next, we draw on material entropy and life cycle thinking to integrate both perspectives and develop a more comprehensive way of conceptualising resource states, in the form of the Resource States framework. We furthermore present how this framework can be used A) to clearly distinguish between circular strategies, as well as between different implementation scenarios of the same circular strategy; B) to systematically explore and map synergies and trade-offs between combinations of circular strategies; and C) to link circular strategies with structural waste present in a given context. Lastly, we discuss the strengths and weaknesses of the framework and reflect on how it advances the CE field.