Environmental damage and the resulting global warming are two of the most serious threats to living species. These problems are the result of industrialization in all fields. The textile and fashion industries bear a negative impact on the environment and contribute significantly to water, air, and solid waste pollution. Over the last decades, consumer buying habits have shifted, and clothing purchases have increased dramatically. The manufacturing process of these textiles, from pretreatment to dyeing and finishing, involves the use of numerous chemicals that are harmful to both humans and the planet. Textiles have been identified as unsustainable products due to their entire life cycle, from raw material cultivation to manufacturing, and generate a large amount of toxic waste and greenhouse gases. Therefore, embedding sustainability in strategy is essential to meet evolving investor pressure, consumer demand, and regulatory requirements. More alternatives are available, such as ecofriendly textiles. Governments are promoting the idea of ecolabels and sustainability standards that endorse the textile’s “ecofriendliness”. Ecolabeling stimulates consumers and manufacturers to buy and produce ecotextiles, simultaneously allowing consumers to compare the various products. Consumers are gradually requesting more ecofriendly products. To save our environment and future generations, the textile industry must become more sustainable. Major brands should implement sustainable manufacturing practices. This review paper investigates the requirements of ecofriendly textiles, restricted substances, and ecolabeling in the textile industry and highlights the need to enhance the expertise and information existing in the design process with regard to the sustainability of finished products in order to create a more sustainable textile sector. Such a shift is only feasible if the designers are guided by a clear vision of design for sustainability.