Finishing, the last step of textile processing, is attributed to rendering crucial functional and commercial value addition to textiles. Depending on the customer’s needs and end use, finishing can be categorized into two broad segments: perceptive and protective. Perceptive finishes enhance the sensory features of the fabric, like touch, smell, vision, sound, and taste. Fabrics treated with softeners, aroma, and wellness finishes stimulate the perceptive senses of the wearer, making the fabric in contact more comfortable and desirable. In contrast, protective finishes provide shielding to the fabric from external agents. Shielding properties like flame retardancy, water–oil repellency, UV protection, and antimicrobial and anti-static nature are enhanced by protective finishes. Investigating their sustainability and biodegradability becomes crucial as finishes are the last chemicals added and remain on the fabric. This chapter discusses the biodegradability and sustainability concerns of textile finishes and the limitations of existing finishing chemistries. The permissible limits and thresholds set for chemical finishes by various eco-regulations are also illustrated in this chapter. It further throws light on the environmental impact of some conventional textile finishes. The sustainable alternatives for conventional chemical finishes and recent product and process developments are also discussed.