The textile industry is undergoing a transformative shift toward sustainability, driven by the urgent need to minimise environmental impact while enhancing fabric performance. Using dyes derived from plants, minerals, and insects is a more sustainable alternative to synthetic dyes, which often contain harsh chemicals. Natural dyes are also slower and more traditional, and they minimise water waste. This paper reviews innovative sustainable finishing processes that exemplify this change, including enzyme-based finishing, which reduces water and chemical usage, and plasma treatment and supercritical CO2 dyeing, which eliminate the need for water and hazardous substances. Additionally, techniques such as foam finishing, digital methods, and ozone finishing minimise resource consumption and waste. In contrast, advancements in nano finishing, waterless dyeing, and mechanical processes enhance fabric properties with minimal chemical inputs. Notable industry examples, such as Levi's Water < Less™ technology and Adidas’ partnership with Parley for the Oceans, demonstrate significant water savings and the use of recycled materials. Brands like Nudie Jeans promote circularity through repair initiatives, and KOTN has achieved a remarkable 70% reduction in water use. The long-term use of nanotechnology in the textile sector can minimise the use of hazardous and toxic chemicals that affect the environment. Water and beverage-repellent protective coating is applied to nano-processed garments. Their protective layer is not visible to the naked eye. Pangaia natural pigment dyes and Zara’s closing the Loop initiative further illustrate the commitment to non-toxic processes and responsible production. Collectively, these sustainable strategies address pressing environmental concerns and respond to consumer demand for ethical fashion, positioning the textile industry toward a more sustainable future and a circular economy. Sustainable fashion is based on three fundamental principles: environmental, social, and economic. The goal is to minimise the negative impact of fashion on the planet while still creating stylish and high-quality garments.