Despite the fact that textile waste is almost entirely recyclable, approximately 75% of it ends up in landfills worldwide. This has serious environmental and economic consequences. This review focuses on textile waste statistics, its contribution to pollution and recycling, as well as the benefits, barriers, types, and technologies of textile waste recycling. Textile production and textile waste generation have increased alarmingly as a result of fast fashion, which emphasizes low-cost production, frequent consumption, and short-term use of garments. This industry is distinguished by scarcity of resources, excessive consumption, and the generation of large amounts of waste. The frequency of consumer purchases is increasing, while the life span of clothing is drastically decreasing. Recycling does not occur as expected for a variety of reasons, so the environmental impact and economic losses from this waste grow over time. The textile industry currently contributes about 8% of the global carbon budget and 20% of industrial water pollution. Every year, $500 billion is lost to the system due to unused clothing and a lack of recycling. A paradigm shift is urgently required to implement an effective textile waste recycling system.