The textile industry is very resource and chemical-demanding; wet processes, including pretreatment, dyeing, printing, and finishing, are significant contributors to energy consumption, chemical waste, and water contamination. The conventional techniques involve permanent substances, high liquor ratios, and toxic auxiliaries, all of which have negative effects on the environment and human health. Green chemistry uses alternatives that are driven by degradability, prevention, and green solvents to replace solvents. Enzyme-assisted pretreatments, salt-free or supercritical CO2 dyeing, plasma treatment, ozone/UV oxidation, the use of natural dyes, and bio-mordants are examples of ecological substitutes for the earlier noted methods. Modern methods, including sol-gel coatings, layer-by-layer assembly, and nanoparticle finishing, reduce effluents while adding antibacterial, UV protective, water-repellent, and self-cleaning properties. Without sacrificing comfort, nanotechnology and plasma will improve multifunctionality, durability, and wash-fastness. One of the traditional uses of circular frameworks is dabu printing. Combining biotechnology, nanotechnology, and renewable chemistries enables the production of high-performance, environmentally friendly textiles that are safe and promote the objectives of the circular economy.