The integration of microbial biotechnology into diverse industrial processes particularly in the textile industry has revolutionized traditional manufacturing practices by offering sustainable, cost-effective, and eco-friendly alternatives. Microbial enzymes, biopigments, and bio-based materials are increasingly replacing hazardous chemicals in critical textile processes such as fiber treatment, dyeing, and finishing, thereby significantly reducing energy consumption, waste generation, and environmental pollution. Furthermore, advances in genetic engineering and synthetic biology have expanded the capabilities and efficiency of microbial systems for textile applications, enabling innovations such as the development of antimicrobial fabrics, biofunctionalized textiles, and sustainable bioremediation strategies for wastewater treatment. Despite these advancements, challenges persist, including scalability issues, regulatory hurdles, and integration challenges with existing industrial infrastructure. Nevertheless, microbial biotechnology continues to pave the way for transformative innovations, including circular economy models, biodegradable fabric production, and smart textiles embedded with microbial sensors. This chapter delves into the intersection of microbial biotechnology and the textile sector, examining its historical evolution, pivotal microbial species and consortia, groundbreaking applications across the textile value chain, and emerging trends poised to redefine sustainable textile innovation. By bridging scientific research and industrial practice, this exploration underscores the transformative potential of microbial solutions in fostering a greener, more resilient textile industry.