Textile waste is one of the major concerns of today’s global scenario. The waste is constantly increasing due to fast fashion, overproduction in industries and a trend of disposability that leads to frequent discarding of waste to landfills. This review has an objective focusing on a case study of Europe, with a brief emphasis on Portugal. It mainly underlines the numerical values of recycling textile waste and the recovery of valuable resources to promote sustainable waste management in the last 10 years. Within the European Union, an estimated 6.95 million tonnes of textile waste were generated in the year of 2020. Of this, 4.4 kg per capita was collected separately for recycling whereas 11.6 kg per capita was disposed of in landfills. The Eurostat reported that Portugal produced 76,412 tonnes of textile waste by 2020. To reduce textile waste, recycling is an effective and practical solution. In line with this, March 2022, the European Commission launched the European Union strategic plan for circular and sustainable textiles. In conclusion, it is necessary to know the reality of each country regarding waste and existing solutions to outline future strategies in terms of business opportunities, R&D and projects that could be developed in the future for fashion. Additionally, the management of textile waste is a critical challenge and there is a need to set up future targets.