The textile sector of Bangladesh stands as a major economic pillar, yet it poses substantial environmental and social challenges in its journey towards sustainability. Integrating Life Cycle Analyses (LCA) and Circular Economy (CE) emerges as a crucial strategy to combat environmental degradation, resource scarcity, and socio-economic disparities. This paper underscores the significance of LCA and CE frameworks in enhancing resource efficiency, mitigating harmful environmental impacts, and fostering inclusive growth in Bangladesh’s textile industry. Through applying these frameworks, the study identifies tangible benefits, such as reductions in water and energy consumption, lower carbon emissions, and advancements in waste recycling processes, all of which contribute to achieving Sustainable Development Goals (SDGs) in Bangladesh. By embracing a comprehensive and holistic approach that encompasses the entire product lifecycle and emphasizes circularity, Bangladesh can unlock pathways for sustainable development in the textile sector while confronting urgent environmental and social concerns. This study explores the interconnections among LCA, CE, and the Sustainable Development Goals (SDGs) in Bangladesh, synthesizing existing literature and empirical data to illuminate their implications. It delves into the synergies between LCA and CE, highlighting their complementary roles in reducing resource depletion, waste generation, and environmental harm across product lifecycles, including specific examples such as improved textile recycling initiatives and reductions in harmful chemical usage. Additionally, the paper examines diverse perspectives from key institutions in Bangladesh, assessing prospects, practices, and challenges of LCA and CE implementation. Identifying barriers hindering the adoption of LCA and CE practices, including policy, technical, and public participation obstacles, this paper offers insights for policymakers and lays the groundwork for future research endeavors. It emphasizes interdisciplinary approaches to strengthen the relationship between LCA and CE as a sustainable metric, advocating for policy interventions, capacity building, and stakeholder engagement. Ultimately, this research underscores the pivotal roles of LCA and CE, especially within the textile industry, in propelling Bangladesh towards a more resource-efficient, environmentally sustainable, and socially inclusive future, aligned with the SDGs.