Conventional dyeing and finishing processes have led to significant energy, chemical, and water consumption, resulting in environmental pollution. These adverse effects have led to a transformative shift within the textile industry toward eco-friendly colouration and finishing processes to minimise environmental impacts. Subsequently, by maintaining product quality and reducing ecological impacts, the textile industry is driving towards achieving sustainability, in line with the Sustainable Development Goals. In this chapter, we discuss the application of eco-friendly colouration and finishes on textiles under three (3) distinct areas. The first part highlights the effects of conventional colouration and finishes, which influenced the advancement of eco-friendly approaches to limit any environmental impacts. We further discuss the key processes and techniques adopted under eco-friendly colouration, such as waterless dyeing, bio-dyeing, and dyeing with natural dyes; and under eco-friendly finishes, including plasma, enzymatic, bio-active, and polymeric finishes, among others. The sustainability of the environment is imperative; hence, we discuss key policies and regulations developed to ensure compliance by manufacturers within the textile industry. The chapter concludes with some insights into promising areas for future research, providing innovation and efficiency in reducing carbon emissions, achieving regulatory compliance, minimising environmental impact, and fostering a sustainable textile value chain.