The pulp and paper (P&P) industry faces significant sustainability challenges due to its reliance on chlorine-based bleaching agents, which generate toxic organochlorine compounds like adsorbable organic halides (AOX). These chemicals conflict with global sustainability goals, particularly SDG 6 and 12. This chapter explores xylanase enzymes as a sustainable alternative to conventional bleaching methods. Xylanases degrade xylan, a hemicellulose component, hence facilitates lignin removal and reducing chlorine consumption. Their application enhances paper quality, reduces energy use, and minimizes environmental pollution. However, challenges such as enzyme stability, production costs, and gaps in molecular understanding hinder widespread adoption. Advances in genetic engineering, thermostable enzyme development, and process optimization are critical for scaling xylanase use. By addressing these challenges, the P&P industry can transition toward greener practices, aligning with global sustainability targets.