Today’s fashion industry is among the most unsustainable industries on the planet, responsible for around 3–5 per cent of global carbon emissions. Theory and literature show that making this industry more sustainable is possible by implementing circular economy (CE) principles and new technological developments along the entire value chain, but in practice there is still considerable reluctance and ignorance about implementing more sustainable practices in fashion. This article studies the role of different stakeholders in fostering the transition to a more sustainable fashion industry in Europe. We do this by using a conceptual framework with four groups of actors, namely companies, consumers, public authorities and NGOs. A literature review is supplemented with qualitative case studies of five Belgian companies active in the fashion industry and two public circular platforms. The study first reveals a clear lack of knowledge and information about circularity, both among companies and consumers. Knowledge dissemination should be considered a first important instrument for change. NGOs and public authorities can play an important role in creating social awareness and drawing attention to the issue. Furthermore, public authorities should create the necessary financial, economic and legal framework to stimulate sustainable business models and accelerate change in consumption patterns. The cases we have studied use one or a combination of sustainable practices, ranging from more sustainable design and material choices up to reuse and repair options, but they are still searching for an economically viable model in the longer term. Our study also shows that the realization of circular business models and its success largely depends on the interaction between the different stakeholders. The new EU strategy for sustainable and circular textiles is a first promising step in this direction. The next crucial challenge will be to put this EU strategy successfully into practice. The transition to a sustainable fashion industry will require both substantial investments and conviction from all stakeholders, but this will pay off in the long run.