This work demonstrates the technical, economical, and environmental viability of integrating enzymatic hydrolysis, mechanical refining, and total chlorine-free (TCF) bleaching processes for industrial-scale production of glucose from textile waste. The process features an innovative mechanical refining pretreatment coupled with TCF oxidation of dyes to achieve over 90% improvement in enzymatic hydrolysis yields of cotton textile waste while also promoting the purification and recycling of synthetic fibers. A comprehensive techno-economic analysis was performed based on a 14,000 bone dry tons (BD tons) annual glucose production line, utilizing both 100% cotton and cotton/polyester blends, reveals capital investments ranging from USD 5.6 to 7.9 million, with manufacturing costs per ton of glucose varying between USD 215 and USD 475, depending on the textile blend used. The cotton/polyester 50/50 blend scenario had the lowest minimum selling price (USD 290 per ton of glucose) due to the revenue from the unhydrolyzed synthetic fibers, which are a valuable and key co-product. A sensitivity analysis highlights the significant influence of recycled polyester content and market prices on the economics. Additionally, a life cycle assessment was performed to compare the carbon footprint of the four scenarios. In contrast to other existing pretreatments that can contribute to up to 70% of the emissions in enzymatic hydrolysis of textiles, the mechanical refining pretreatment can contribute as low as 10% of the total emissions in the process proposed in this work. While certain challenges remain, such as the development of a robust supply chain model, the conversion pathway shown in this work for upcycling cotton textile waste into value-added chemicals represents a promising opportunity to combat textile landfilling and foster the circular economy within the industry.