Purpose Previous studies emphasized the substantial energy-saving potential of light emitting diode (LED) lighting systems, especially in the clothing industry. However, the specific quantification of energy conservation potential in industrial factories, particularly in Bangladesh’s readymade garment (RMG) sector, remains unexplored. The purpose of this study is to investigate the potential energy savings and efficiency improvements of lighting systems in Bangladesh’s RMG sector using LED technology. Design/methodology/approach Understanding and optimizing energy consumption is crucial in the RMG sector because this sector contributes significantly to the country’s export earnings. For this, an RMG factory was surveyed and possible lighting system retrofitting was estimated and compared. Findings The adoption of energy-efficient lighting options, particularly LED, could decrease the current lighting energy usage from 15% to 7.5% in Bangladesh. First, this study reveals, that the reduction of annual energy consumption was determined to be 18,220 kWh due to the retrofitting of the lighting system with LED tube. Second, it conducts real-time measurements to assess the suitability of in-building lighting systems, providing insights into the current scenario. Lastly, it evaluates the economic and environmental benefits of the proposed lighting system in the RMG industries. Due to the retrofitting of the lighting system, the reduction of equivalent CO2 gas emissions was found to be 119.896 tCO2. Originality/value For the first time, this study explored the potential for enhancing energy-efficient lighting system design through retrofitting in the RMG industry, with a focus on Bangladesh. By addressing these aspects, this study aims to contribute to the advancement of energy efficiency and conservation efforts in the RMG sector, ultimately fostering sustainable industrial development in Bangladesh and beyond.