Background: The textile industry generates a large volume of waste due to the increasing demand for clothing for daily use and fashion. To reduce waste, reverse logistics (RL) has been proposed to ensure the recycling and reuse of waste textiles in the value chain. RL has been broadly examined in several manufacturing supply chains but less explored in the textile industry. The absence of a systematic review on textile reverse logistics (TRL) makes it difficult to identify existing knowledge gaps and research opportunities. Methods: Using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework, this paper contributes a systematic literature review of 28 relevant papers published on TRL between 1999 and August 2022. Results: Overall, there is a shortage of recycling facilities in developing economies. There is a need for quantitative models that assess the location and potential disruptions and aversion of the resulting risks of TRL. Investigating consumers’ perspectives on the desire to sort and transport old textiles to collection sites would be helpful to manufacturers. Additionally, system optimization to reduce emissions that emerge through the TRL production line would help reduce costs. It is also found that incentivizing clothing businesses that adhere to TRL practices would encourage more participation. Conclusions: This study discusses research opportunities in TRL that are beneficial to the clothing and textiles industry and researchers in developing new waste management strategies.