The global textile fiber output increased five times from 1975 to 2020. Also, in 2010, the combined demand for man-made and natural fibers was projected to increase by 84% within 20 years. Clothing materials are largely made from cotton or petroleum-based synthetic fibers; both sources, however, have adverse environmental impacts. Thus, cotton requires vast amounts of land, water, fertilizers and pesticides, and synthetic fibers are not biodegradable. This scenario has raised the need for further exploration of cellulose polymers as sustainable sources for the textile industry. Cellulose, the most abundant renewable organic material on earth, is an outstanding polymer that by chemical derivatization or modification can offer a broad range of applications. Dissolving-grade pulp (DGP), which consists of highly pure cellulose, is the most suitable material for manufacturing cellulose derivatives and regenerated fibers. The latter are typically obtained by using the viscose process, which has considerable adverse environmental impacts. Although the textile industry has progressed substantially, further efforts are still needed to make its entire production chain more sustainable. This article provides an in-depth introduction to the potential of fibers with a high cellulose content, known as dissolving-grade pulps. It reviews the properties of DGP, the cooking and purifying methods typically used to obtain it, and the process by which paper-grade pulp can be converted into dissolving-grade pulp. Also, it discusses traditional and recently developed technologies for producing regenerated cellulose fibers. Finally, it examines the potential for recovering cellulose from textile waste as a novel sustainable practice.