<p>Pre-consumer textile waste (PCTW) represents a substantial yet underutilized resource within the textile value chain. Traditionally, much of this waste has been disposed of via landfilling or incineration, resulting in resource inefficiency and environmental impact (EI). This review systematically analyzes peer-reviewed studies and industrial reports published in the last 15&#xa0;years to evaluate methods, results, and challenges in PCTW management. It categorizes and compares recycling strategies, including mechanical, chemical, and hybrid processes while assessing their efficiency, scalability, and EI. The review identifies major sources of PCTW—such as spinning, dyeing, and garment manufacturing residues—and highlights case studies demonstrating material recovery, fiber quality retention, and integration into new textile and non-textile applications. Key challenges are critically examined, including fiber degradation, contamination, economic feasibility, and technological gaps. The novelty of this work lies in linking technical advancements with entrepreneurial opportunities, offering practical guidelines for researchers, policymakers, and recycling start-ups. Finally, the review outlines future research directions and emphasizes innovative circular economy models to transform PCTW into a valuable feedstock for sustainable production.</p> Graphical Abstract <p></p>