The textile industry is one of the largest consumers of freshwater and simultaneously one of the majorcontributors to industrial water pollution worldwide. Textile manufacturing processes such as sizing, desizing,scouring, bleaching, mercerizing, dyeing, printing, and finishing generate substantial volumes of wastewatercontaining complex pollutants. These effluents are characterized by intense colour, high chemical oxygendemand (COD), biological oxygen demand (BOD), total dissolved solids (TDS), suspended solids, heavymetals, surfactants, and recalcitrant organic compounds including reactive and azo dyes. The presence of highsalinity and non-biodegradable organics makes treatment particularly challenging using conventionalbiological systems alone. For small and medium enterprises (SMEs), which constitute a significant portion oftextile clusters in developing countries, installation and operation of individual effluent treatment plants(ETPs) are often economically and technically unfeasible. To address this issue, Common Effluent TreatmentPlants (CETPs) were developed as centralized treatment facilities serving multiple industrial units. CETPsenable cost-sharing, regulatory compliance, and improved monitoring of wastewater discharge. This reviewdiscusses CETP configurations, treatment stages and technologies, performance efficiencies, Zero LiquidDischarge (ZLD) systems, sludge management strategies, and emerging sustainability challenges in textilewastewater management.