<p>The textile industry is the largest sector globally. However, it is also the most polluted sector due to the large amount of textile waste and wastewater. The Circular Economy (CE) can play a crucial role in reducing waste. Developed and developing economies are implementing and developing CE practices for waste management. The current study aims to explore CE practices that could be implemented globally. To achieve the study’s aim, a Systematic Literature Review (SLR) was employed. Through SLR and based on 54 selected articles, 35 CE practices were identified and categorised into seven major groups. The study’s findings show that using recycled materials in the production of textile products is the most popular strategy, as it was primarily cited. It also highlights the need for integrated collaboration among supply chain stakeholders, including the government, manufacturers, consumers, and recyclers. The government could implement policies that encourage manufacturers to adopt sustainable practices, such as eco-designing products. Manufacturers can utilise sustainable materials in their production processes. Recyclers could adopt efficient sorting, segregation, and recycling technologies to enhance their operations. The current study offers valuable insights for practitioners and policymakers, providing a range of strategies and policy recommendations.</p>