Due to environmental concerns, an increasing number of Chinese consumers have begun to resist fast fashion, promoting cheap and lower quality materials with a short lifetime. A shift from a linear economic model to a circular fashion has become an urgent issue for the industry. To examine how brand stereotype affects consumers’ purchasing intention toward upcycled fabric clothing, this study adopted a grounded theory approach to develop the dimensions of brand stereotypes, including product, manufacturing process, service, and communication. Furthermore, a theoretical model was constructed incorporating brand stereotypes, brand green trust, fashion consciousness, and green consciousness. Results from structural equation model analysis indicated that (1) each dimension of brand stereotypes had a significantly positive impact on behavior intention, and especially product and service image have the most influence; (2) brand green trust mediated the relationship between brand stereotypes and buying intention, and (3) green consciousness positively moderated the relationship between brand stereotype and trust, whereas brand warmth in communication and trust was moderated negatively by fashion consciousness. The findings offer implications for the implementation of the green branding strategy, brand positioning, and cultivating consumers’ green awareness to improve market acceptance of upcycled fabric clothing.