Biodegradable textiles are emerging as a critical innovation in the fashion and textile industries, designed to naturally decompose at the end of their lifecycle. These materials are primarily derived from renewable sources such as plants, algae, and microorganisms, which significantly reduce landfill waste and help mitigate microplastic pollution. As environmental concerns intensify, the demand for sustainable alternatives to conventional textiles has grown, fostering various innovations in this area. This chapter explores the pivotal role of biodegradable textiles in sustainable development and their potential to address the environmental challenges associated with traditional textile production. It discusses the innovative contributions of microbial biotechnology in enhancing the biodegradability of textiles and the development of smart textiles with environmentally friendly properties. Additionally, the chapter highlights the diverse applications of biodegradable textiles across sectors such as fashion, healthcare, agriculture, and broader sustainability efforts. Specifically, it addresses the growing trend of biodegradable textiles in fashion to reduce waste, their use in healthcare for disposable medical products, and their role in agriculture to improve soil quality. The chapter offers an in-depth exploration of the advancements in biodegradable textile technology and its promising potential for a more sustainable future.