This review discusses cotton textile processing and methods of treating effluent in the textile industry. Several countries, including India, have introduced strict ecological standards for textile industries. With more stringent controls expected in the future, it is essential that control measures be implemented to minimize effluent problems. Industrial textile processing comprises pretreatment, dyeing, printing, and finishing operations. These production processes not only consume large amounts of energy and water, but they also produce substantial waste products. This manuscript combines a discussion of waste production from textile processes, such as desizing, mercerizing, bleaching, dyeing, finishing, and printing, with a discussion of advanced methods of effluent treatment, such as electro-oxidation, bio-treatment, photochemical, and membrane processes.