Textile waste is all textiles and products that are dropped away. This waste comes from various sources: households, factories, and the fashion industry and significantly challenges the environmental and economic potential for sustainable waste management. This paper proposes a simulation-based optimization of textile waste collection routes, focusing on efficiency and sustainability. The model considers vehicle characteristics, collection demand, and environmental aspects. Also, it examines vehicle routes, container, and sensor technology scenarios. The results show that efficient, sustainable solutions with strategic container placement and dynamic routes can reduce travel costs and environmental impacts. As a case study, the Huesca region of Spain confirms the effectiveness of dynamic route planning and sensor technology. This method allows waste management authorities to optimize resource allocation and reduce emissions and costs, as the simulation-based method for optimizing routes can reduce costs and environmental impacts while maximizing efficiency. It highlights the urgency for waste management stakeholders to conform with recent Spanish legislation mandating. This study provides valuable insights to meet legal obligations while ensuring operational efficiency and sustainability.