The textile industry has undergone immense transformation, moving from the more environmentally friendly traditional practice to the resource-intensive and polluting fast fashion system dominating today. Traditionally, textiles were produced using natural fibers and dyes with minimal environmental impact. The Industrial Revolution introduced mass production, which resulted in much environmental degradation through increased water pollution and resource depletion. As environmental concerns have grown, the textile industry has witnessed the emergence of sustainability practices, like ecological fibers-organic cotton, hemp, and recycled materials eco-labels and certifications. Nevertheless, the industry still faces tremendous challenges, with the unsustainable fast fashion model, excessive waste generation, and the economic barriers that prevent the massive implementation of sustainability practices. With increasing consumer demand for transparency and sustainability, luxury brands are now adopting environmentally friendly practices despite cost and supply chain management challenges. A critical strategy to reduce the industry’s environmental footprint is implementing zero-waste practices, which support a circular economy through recycling, upcycling, and innovative design. Notable examples include brands like Eileen Fisher, Zero Waste Daniel, and new sustainable materials like mycelium leather and recycled fabrics. Collaboration and partnerships among stakeholders are essential as the textile industry shifts toward a more sustainable future.