Circular fashion aims to change the traditional fashion model into a sustainable system that reduces waste, reuses garments, and regenerates natural systems. Different business models exist like closed-loop recycling, products-as-a-service (PaaS), design for longevity, and take-back-give-back schemes for elevating circular fashion. These models are sustainable systems that reduce waste, promote resource efficiency, and extend product use. The growth is witnessed in ‘circular fashion’ due to increased demand for sustainability, government initiatives to promote sustainable products, economic opportunities, etc. There are also various new business models other than the available and existing ones which reconceptualise ownership and lead people to follow ‘circular fashion’. However, the rise in circular fashion does have challenges and this chapter discusses those challenges along with the opportunities. The chapter also discusses how consumer behaviour impacts the circular fashion concept and thereby sustainability. The various ways of increasing consumer awareness towards sustainability are also mentioned in this chapter. The policy and regulatory frameworks play important roles in promoting circular fashion as they provide the roadmap for the future of the country and the world. So their impact is also detailed in the chapter. The chapter also delves into the economic viability of circular fashion. The whole process involves building a sustainable and transparent supply chain, and the ways to build them are discussed along with the barriers in ‘circular fashion’. This chapter gives a detailed view of how the rise of circular fashion leads to sustainable apparel retailing.