Recycled clothing is essential for diminishing fashion waste and promoting circularity by prolonging garment lifespan and lowering environmental impact. As brands adopt recycling strategies such as resale, upcycling, and repair, consumer participation becomes essential for success. However, despite the growing emphasis on sustainability, the adoption of recycled clothing is often hindered by psychological barriers, particularly perceived identity threat—the concern that wearing recycled apparel may negatively impact one's social image. This study examines the moderating effect of perceived identity threat on the relationship between environmental consciousness and purchase intention for recycled clothing. Grounded in the Theory of Planned Behaviour, it explores whether consumers with strong environmental values exhibit higher purchase intentions and whether this relationship is weakened when individuals perceive a threat to their social identity. By analysing responses from Millennial consumers using Model 1 of the PROCESS Macro, this study provides insights into how brands can mitigate identity threats and position recycled clothing as both sustainable and socially appealing. The findings will aid fashion retailers in developing strategies to enhance consumer engagement with sustainable fashion.