The textile industry constitutes an essential part of the economy and culture of any country. Finishing textile goods is an important step in improving the properties of the fabric. However, using harsh chemicals during textile finishing can lead to generating various types of pollutants. Driven by an increasing demand for sustainable, environment-friendly, and high-quality textiles, a marked shift in the textile finishing processes has been observed. Enzymes function as biochemical catalysts that enhance the rate of chemical reactions while remaining unaltered. They have gained prominence in textile finishing, offering an alternative to traditional chemical methods. Enzyme-based finishing processes are preferred because they are environment-friendly, require less energy, and can be performed under milder processing conditions than conventional chemical methods. Many enzyme-based approaches have been developed and are undergoing additional refinement, focusing on various aspects of textile finishing. This chapter explores the applications of enzymes in the context of textile finishing, ranging from their historical development to the latest advancements, thus providing a comprehensive overview of this environment-friendly approach.