Textiles are composed of different types of fibers; thus, different processes for end-of-life recovery are currently applied. After collection, a prior sorting process is essential to classify the textiles and assess their quality in order to ensure that the best available technology is selected, with mechanical recycling being the most widespread and mature. Nevertheless, it still has important limitations as it is not suitable for the treatment of all fibers, especially those of non-organic origin and blends. On the other hand, chemical recycling appears to be a necessary technology to valorize the fibers that cannot be reused or mechanically recycled and to avoid landfilling. This article aims to provide an overview of the available technologies in the field of textile waste recycling, including collection, pretreatment, and mechanical and chemical recycling processes. Each technology is described identifying pros and cons, and a techno-economical assessment is presented including technology readiness levels (TRLs), investments, and costs. European and Spanish regulations and policies on textile waste are analyzed to identify the trends and directions the sector is moving towards.