The aim of this review study is to understand the current state and practice of sustainability innovation in the textile industry. The textile industry is regarded as one of the industries that faces the biggest challenges in incorporating sustainability in its business practices. In this study, we conducted a systematic review to synthesize empirical knowledge relevant to sustainable innovation in the textile industry. From the systematic search process, 41 papers that were identified met the criteria of inclusion and were then analyzed qualitatively using thematic analysis. The findings showed that the attention of researchers toward sustainability innovation has increased in the recent years. Sustainability innovation practices in the textile industry were identified. Sustainability product innovation includes ecodesign, ecolabel, life cycle assessment, materials, and packaging. Sustainability process innovation includes cleaner production, ecoefficiency, waste handling, supply chain management, and enzymatic textile processing in process innovation. Sustainability organizational innovation includes the environmental management system (EMS) and corporate policy, collaboration, business model innovation, culture and knowledge management, and enzymatic textile processing. This study found that the dominant sustainability innovation practice discussed in the textile industry is more related to the ecological innovation aspect compared to social innovation. As consumer demand for ecofriendly products is growing, as are more stringent regulations, it is important for business players and policymakers to develop sustainability innovation in the textile industry together.