The fashion industry is one of the largest contributors to global environmental pollution due to excessive consumption of natural resources, the rapid growth of fast fashion, and the generation of large volumes of textile waste. These challenges have created an urgent need to adopt sustainable practices within the textile and apparel sector. Among the various sustainable alternatives, Indian handloom fabrics provide an environmentally responsible and culturally significant solution by combining traditional craftsmanship with eco-friendly production techniques. This paper explores the role of Indian handloom in promoting sustainable fashion. Handloom weaving is a low-impact textile production process that requires minimal energy consumption and produces significantly lower carbon emissions than mechanized textile manufacturing. The sector primarily utilizes natural fibres such as cotton and silk, woven through skilled artisanal techniques with limited industrial intervention. Besides its environmental advantages, the handloom industry generates employment opportunities for rural artisans, preserves India's rich cultural heritage, empowers women artisans, and contributes to inclusive socio-economic development. The findings indicate that integrating Indian handloom fabrics into contemporary fashion not only reduces the environmental footprint of the textile industry but also strengthens cultural preservation and promotes sustainable economic growth. The study emphasizes the importance of supportive government policies, increased consumer awareness, and stronger collaboration among designers, artisans, and fashion industries to expand the role of Indian handloom in the global sustainable fashion movement.