This review centres on the development of dyeing and finishing technologies for lyocell (TENCEL®) fibres since they were introduced onto the market in 1992. Initially, it will look at the reason for starting manufacture of the fibre and its manufacturing technology. An overview of basic dyeing performance is followed by a critical assessment of the fibre's introduction into the commercial world and the problems that ensued from its fibrillation property. The review then outlines the pioneering process development efforts made in Japan. Dye machinery manufacturers also played an important role in developing processing routes, particularly, but not exclusively, Then, Thies, and Krantz. Courtaulds Tencel formed an alliance with Sir T & A Wardles of Courtaulds Textiles, setting up a project to demonstrate successful jet processing of lyocell fabrics. Investment in jet dyeing machines and personnel was critical: the review explains how it was done and results that were achieved. It also considers how to control fabric behaviour in relation to creasing and fibrillation. The latter phenomenon held the fibre back from knitted applications. Both Courtaulds and Lenzing developed non‐fibrillating versions of the fibres. This review covers these advances, as well as how new markets have been developed for the fibre, such as workwear and bed sheeting. It concludes by looking at the key market segments today and how Lenzing sees the lyocell market evolving.