The agriculture and agri-food sectors produce substantial amounts of plant-based waste. This waste presents an identifiable research opportunity to develop methods for effectively eliminating and managing it in order to promote zero-waste and circular economies. Plant-based waste and by-products are acknowledged as valuable sources of bioactive compounds, including cellulose fibers. Direct application of these fibers in non-food sectors such as textiles can reduce the environmental impact of secondary raw materials. This review aims to provide an overview of novel concepts and modern technologies for efficiently utilizing plant-based waste and by-products from the agricultural and agro-industrial sectors to extract fibers for a variety of final applications, including the fashion industry. Two major routes are identified to produce cellulose fibers: the extraction and purification of natural cellulose fibers and the extraction and purification of cellulose pulp that is further processed into manmade cellulosic fibers. Scalability of experimental results at the laboratory or pilot level is a major barrier, so it is critical to develop closed-loop processes, apply standardization protocols, and conduct life cycle assessments and techno-economic analyses to facilitate large-scale implementation.