<p>The textile industry, a significant contributor to global GDP and employment, is facing mounting environmental challenges due to its resource-intensive operations and waste generation. Rising demand for textiles has led to increased energy consumption, greenhouse gas emissions, water pollution and substantial textile waste, much of which is either incinerated or disposed of in landfills. Recycling has emerged as a sustainable solution to mitigate these environmental impacts by addressing the lifecycle of textile waste. This review explores advancements in recycling technologies for various textile waste streams, including pre-consumer and post-consumer cotton waste, employing both chemical and mechanical processes. It highlights the potential applications of recycled materials across sectors such as apparel, non-woven products, composites and construction. However, the effectiveness of textile recycling is constrained by challenges including limited infrastructure, low consumer participation, economic viability and technical hurdles such as fibre separation and contamination during processing. Addressing these issues requires innovation, substantial investments and the establishment of comprehensive policy frameworks to promote recycling practices and foster a circular economy within the textile industry. This review emphasizes the need for collaborative efforts to enhance recycling efficiency and sustainability in the sector.</p>