Sustainability is a widely recognized concern and priority for healthy growth of the society and for preservation of the planet. Concerning this, textile sector has seen an unprecedented demand for sustainable products from the consumers, responding to which organizations have undertaken different initiatives. One of the major concerns in the textile sector is its complex supply chain networks and the involvement of numerous actors dealing with diverse raw materials and operations. The effective implementation of sustainability at the industrial scale would require the participation of all supply chain actors, along with an efficient traceability system to monitor and analyze different sustainability aspects. Furthermore, traceability is an integral part of the recycling process which contributes towards the sustainability. Therefore, the present article focuses on the contribution of traceable information towards attaining the sustainability in the textile sector. The three pillars of sustainability, namely, ecological, societal, and economic, are discussed for their relation and dependency on the traceability followed by an overview of the challenges in successful implementation of the traceability system, which is anticipated to shape the future research questions.