Rural household waste management is essential for rural revitalization and ecological civilization, significantly impacting habitat improvement, resource recycling, and farmers' ecological benefits. This study systematically reviews research on farmers' participation in waste classification to clarify existing findings, identify gaps, and guide future research and practice. The research employs a standardized literature review method, analyzing studies through the "psychology-behavior-institution" framework. This tripartite approach examines micro-level individual psychology, meso-level social capital networks, macro-level policy environments, and their interactive dimensions. Digital literacy serves as a critical catalyst in bridging the intention-behavior gap, enhancing sorting through improved environmental awareness and information access. Informational policy tools operate via affective event theory pathways, though their effectiveness is moderated by individual characteristics and regulations, with rigid tools posing limitations. Psychological variables demonstrate configurational and grouping effects, where combinations better explain behavioral differences than isolated factors. The government bears primary cost responsibility, while effective governance requires institutional integrity, multi-agent synergy, and income-adjusted cost-sharing mechanisms. This review highlights that effective rural waste governance requires integrated strategies prioritizing digital empowerment to bridge participation gaps and flexible approaches to accommodate regional heterogeneity. Policymakers should develop income-adjusted cost-sharing mechanisms with government leadership, leverage social capital networks while mitigating biases through formal institutions, and implement differentiated interventions. Crucially, transitioning from rigid campaigns to sustainable co-governance models—combining community-driven rules with smart monitoring—can transform administrative mandates into autonomous actions, fostering ecological revitalization.