Linear economy prevails in textile industries while pre and post-consumer textiles are emerging in volumes that pose challenges around the globe including in countries with well-developed waste management systems. Source-separation of this waste stream is limited, including in Europe, while the circular economy aims to shift the textile wastes from open environments, landfills, or waste to energy plants towards efficient recycling, repair, reuse, and remanufacture services. This chapter examines the both principles and practices of textile waste management looking to upstream innovation (circular design) and downstream collection, sorting, and recycling infrastructures. Key sectors of textile industries such as clothes, footwear, fashion-related accessories, and other applications that integrate pre and post-consumer textiles through business and community actions (home décor, household textiles, furniture) are analyzed. This work reveals the biocentric vision of a circular economy in textile industries through the development of biobased materials replacing plastics, and conventional cotton, finding alternatives for animal-based materials, supporting organic and regenerative agriculture, and natural-based solutions for colorization. The chapter identifies the best practices in textile waste management and innovation of companies in the upstream sector and highlights the role of networking “business to business” and collaboration “business to consumers” in implementing CE principles in the textile sector.