The textile industry can be accepted as a significant contributor to the global economy and has been experiencing a paradigm change recently towards environmentally friendly and sustainable processes. Alternative approaches have been suggested by academics, researchers, and industry professionals due to the worries about the environmental effects of conventional textile finishing stages. In the textile business, finishing treatments are essential for improving the final product's antibacterial, flame-retardant, antistatic, oleophobic, and other qualities. The conventional finishing processes often involve the usage of petrochemicals, excess amounts of water, and volatile organic compounds (VOCs) that are all accepted as environmental challenges due to their non-biodegradable nature, and possible damage to the ecosystem and human health. Bio-polymers and bio-derived compounds have become increasingly attractive for environmentally friendly textile finishing as a substitute for petroleum-based chemicals as they are reusable and biodegradable. This chapter examines the application of bio-derived polymers in textile finishing stages, emphasizing how they have the potential to transform the sector by providing environmentally friendly solutions without any loss on the performance and functionality of the end product. Numerous bio-polymers, including starch, cellulose, chitosan, protein, etc., are utilized in textile finishing applications for a variety of objectives according to the literature. For example, chitosan, which is produced by the deacetylation of chitin, which is present in sea animal shells, possesses an inherent antimicrobial property and is known for its versatility in enhancing antibacterial fabric properties. Starch, a carbohydrate polymer, offers a sustainable option for improving fabric stiffness and wrinkle resistance. Cellulose, extracted from plant sources, can be utilized for its excellent moisture management and breathability. Enzymes are being used for bio-polishing effects on textiles to enhance the luster and softness of the fabrics. Proteins such as soy protein and collagen have gained attention for their ability to impart softness and durability to textiles. Essential oils with a variety of benefits, including pain and tension relief, relaxation, and refreshing qualities, such as orange, vanilla, and jasmine, are utilized to complete fragrances. Besides, epoxidized soybean oil (ESBO) is a notable bio-derived alternative to traditional finishing agents generated from petrochemicals, helping to drive the industry's green shift. After the chemical modification of ESBO, photocurable formulations can be derived by using additives, bio-based oligomers, and photoinitiators and can be used to give fabrics certain qualities during the finishing phases. The usage of photocuring in textile finishing contributes to sustainability by minimizing waste along with water and VOC. The key step in the mentioned process involves exposing the treated textile to UV light, triggering a polymerization reaction in the ESBO-based formulation. This reaction results in a cross-linked, robust, and sustainable finish on the textile.