The textile manufacturing industry is the major consumer of water, dyes, and various processing chemicals. The presence of high color, organic load, and total dissolved solids along with complex organic compounds imparts hazardous nature to the textile effluent; thus, its management is a major concern for textile manufacturers and regulatory authorities. Recently, regulatory authorities are demanding textile effluent treatment plants to be established as the Zero Liquid Discharge (ZLD) facilities. The present research focuses on the shift of existing textile effluent treatment plants to ZLD facilities by applying resource recovery principles to enhance techno-economic feasibility. The major concerns for ZLD facilities include higher energy consumption for effluent treatment and reject management systems. The carbon footprint of a typical ZLD treatment facility in south India was determined and found to be 10,598 tons of carbon dioxide equivalent per year (tCO2eq/year), which is only one-third more than that of a conventional treatment plant. However, the increased carbon footprint would get offset when the environmental benefits of ZLD are considered. A novel approach of changing the aeration source in the biological treatment stage from conventional air to pure oxygen was analyzed. The reduction in treatment time resulted in reduced energy consumption and reduced operation cost. The effect of change in the aeration source on the microbial community was also analyzed. The development of a robust effluent treatment system for the textile effluent, ensuring significant dye removal, is important due to higher potential for bioaccumulation and biomagnification of the dye compounds. An optimized pre-ozonation followed by biological treatment could achieve 98.6% color removal and 91.6% chemical oxygen demand removal from textile effluent. The proposed industrial textile effluent scheme presented a potential recovery of 157 m3 effluent and 375 kg salt per day, resulting in a net annual saving of about INR 3.7 million. A study of combined treatment of municipal wastewater and textile effluent was conducted considering possible advantages of the dilution and enhanced microbial community performance. With the increasing textile manufacturing, the management of hazardous sludge arising from textile effluent treatment has become a major concern. A novel nanoporous adsorbent was developed by the thermal treatment of textile effluent treatment sludge followed by the chemical activation using phosphoric acid. The results of the continuous column studies showed that adsorption capacity for methylene blue, reactive red 198, reactive yellow 145 are 101.8 mg/g, 76.6 mg/g, and 75.1 mg/g, respectively, and the synthetic textile effluent resulted in an adsorption capacity value of 79.1 mg/g over a long-run. The proposed approach would both result in efficient disposal of sludge as well as effective effluent treatment in the textile industry. The leachability studies proved that the used adsorbent could be safely disposed of without any harmful effect to the environment. Also, a decentralized treatment scheme consisting of sequential ozonation and adsorption treatment was developed for micro scale household silk dyeing effluent. The proposed treatment scheme can result in potential treated effluent reuse. The present research work proved to be a major milestone towards sustainable textile manufacturing without harming environment.