The fashion industry, characterized by rapid cycles of production and consumption, has emerged as a global economic powerhouse, generating significant revenue and employment opportunities worldwide. However, this growth has come at a substantial environmental and social cost, marked by extensive resource consumption, greenhouse gas emissions, and labor exploitation. This paper critically examines the environmental and social impacts of the fashion industry, focusing on issues such as textile waste, water pollution, and unethical labor practices. It explores the transition towards sustainable fashion practices, highlighting initiatives like circular fashion and consumer behavior shifts towards eco-friendly choices. The study employs a comprehensive review of current literature and case studies to analyze the challenges and opportunities for achieving sustainability within the fashion sector. By synthesizing diverse perspectives and research findings, this paper proposes strategies to combat greenwashing, enhance transparency, and foster a circular economy in fashion. Ultimately, it aims to provide a framework for stakeholders to navigate towards a more ethical and environmentally responsible future for the fashion industry.