This research investigates the crucial role of consumer awareness in driving sustainable waste management practices within the textile industry, a sector generating significant environmental waste. The study addresses how consumer knowledge, attitudes, and awareness regarding textile waste generation, segregation, disposal, and recycling influence their adoption of sustainable behaviors. Employing a mixed-methods approach, including expert interviews and a quantitative survey of 157 participants analyzed using descriptive statistics and Principal Component Analysis (IBM SPSS 25), the study explores this intricate correlation. Findings reveal that current textile waste management, particularly in markets like India, falls short of UN Sustainable Development Goals (SDGs 6, 12, 13). The research highlights how different facets of consumer awareness impact key sustainable behaviors such as reducing consumption, participating in recycling, and supporting sustainable policies. It also examines external factors like education and community initiatives that enhance awareness. By analyzing these interplays, the study aims to identify strategies for increasing public engagement and promoting sustainable textile waste management for a circular economy. A potential solution proposed is the implementation of accessible, innovative collection systems like IoT-based kiosks to facilitate recycling participation.