The textile industry, one of the oldest sectors, has long been associated with significant environmental concerns, contributing to approximately 20% of water pollution. The textile industry is striving to mitigate its environmental impact. Thus, there is a growing industrial shift towards adopting environmentally friendly and sustainable technologies. A noteworthy development in this regard is the emergence of enzymes as a greener alternative to traditional chemical-based methods. This chapter provides an in-depth exploration of applications of key enzymes such as amylases, cellulases, laccases, lipases, pectinases, and proteases in the textile industry. These enzymes, alone or together, serve as sustainable alternatives in almost all the sectors of the textile industry as their applications span across dry and wet processes, finishing, and bioremediation of textile effluent. Ongoing trends, current challenges, and prospects surrounding the integration of enzymes as a sustainable approach within the textile industry are also reviewed. The chapter sheds light on how enzymes offer a promising avenue to achieve economical and eco-friendly processes. By delving into the nuances of enzyme applications and their potential, this chapter contributes to the broader understanding of sustainable practices in the textile industry.