Nowadays, the textile industry is increasingly shifting towards sustainability to minimize its environmental footprint. This transformation focuses on adoption of eco-friendly materials such as natural fibers, bio-based textiles, and innovations in recycling technologies. Natural fibers like organic cotton, hemp, flax, jute, bamboo and others are gaining attention for their renewable properties and lower environmental impact compared to conventional textiles like polyester, non-organic cotton, rayon and other semi-synthetics. These fibers, however, come with challenges related to water usage and land requirements. Additionally, the emergence of bio-based and biodegradable textiles, derived from sources like algae, mushrooms, microbial cellulose, and fungal mycelium, presents a promising alternative to traditional fibers. These materials are valued for their environmental benefits, yet obstacles such as scalability, performance, and market acceptance need to be addressed for their broader application. Further, recycling plays a pivotal role in circular economy of textiles, contributing to reduction of waste and resource consumption. The recycling of materials such as cotton, polyester, and blended fabrics has seen advancements in technology, although challenges remain in optimizing the efficiency and effectiveness of these processes. The shift towards recycled and upcycled textiles is crucial for reducing the textile industry's overall environmental impact and establishing a more sustainable production cycle. Through this exploration, a comprehensive understanding of current sustainable practices in textile production is provided in this chapter, highlighting the opportunities, limitations, and future potential of these materials and technologies in shaping the future of the textile industry.