Abstract Textile industry has a significant water footprint (WF), leading to various sustainability challenges. This article discusses key findings on the WF and outlines potential solutions. The industry’s WF includes three types: green, blue, and grey. Textile manufacturing is water-intensive, with stages like pretreatment, dyeing, printing, and finishing. This can contribute to water scarcity in some regions. Water pollution is another critical challenge, as the industry generates considerable wastewater containing diverse pollutants which can harm ecosystems and pose risks to public health. Different treatments to reduce the pollutants in water are studied. We have grouped innovations into five major categories for water conservation efforts in the textile industry: To address these sustainability challenges, several solutions are proposed. Each category offers a pathway to reduce its environmental footprint through water conservation. The adoption of water-efficient technologies, such as low-water dyeing and wastewater recycling, can reduce water consumption. Stricter policies for pollution control, along with incentives for sustainable practices, can encourage industry-wide change. Collaboration among stakeholders, including industry, government, and environmental groups, is also crucial for promoting sustainability and reducing the industry’s environmental impact. These approaches can help the textile industry move toward a more sustainable future. Further research needed is suggested.