Harnessing microbial biofabrication and inspired by indigenous practices, we engineer high-performance microbial nanocellulose (MC) biotextiles with a sustainable circular life cycle. Specifically, our plant-based lecithin phosphocholine treatment modulates cellulose cross-linking through phosphate and methylene groups, to yield a biodegradable material with superior mechanical and flame-retardant properties. Coloration is achieved using natural dyes and waste-to-resource strategies. Life cycle impact assessment reveals MC biotextiles mitigate the carcinogenics of leather by a factor of 103 and the carbon footprint of synthetic leather and cotton by ~97%, for widespread application in fashion, interiors, and construction. The translational potential of this approach is tremendous, as using microbes and green chemistry to engineer regenerative, high-performance products will disrupt linear production models and mitigate its environmental threats in a circular economy.