Background: The textile industry new regulations require companies to integrate traceability in their value chain and circular initiatives. Recent studies present concern of the lack of traceability in products. Traceability is seen as an enabler for sustainability, since it displays company value chain activities. This research is part of the research project Systemdemonstratorn for a circular value chain. Purpose: The purpose of this research is to provide insights of the requirements in terms of traceability for companies’ adaptation to the digital product passport for the aim of creating an enhanced circular textile system. The research questions are divided in stage 1 to determine the current state and stage 2 to establish the requirement of future stage. Methodology: This research applies a qualitative approach with an explorative stance. The constructed conceptual framework is based on a merge of value stream mapping and The Butterfly Diagram with the addition of a proposed structure for the digital product passport from CIRPASS. The primary data was collected from semi-structured interviews and a conducted interview tool supported by the 5W1H information gathering technique. Findings: To analyse the findings this research conducted a thematic analysis, where themes were conducted individually in stage 1 and stage 2. The finding indicated a need of an integrated technological solution, a demand for a clear strategic communication process and a desire of clarity both within the companies and in the industry, it may still be a concern due to the novelty of the subject. Increased knowledge was further demonstrated as a necessity together with increased responsibility and lower ambiguity. Integrating traceability in circular loops and a unique product identifier was also distinguished as requirements. It was also stated that participants companies had progressed to different extent in the circular loops. Certifications was further distinguished as an established way amongst the participant to verify their traceability. Key findings are still an absence of completely understanding the concept of traceability. Contribution: This research contributes to demonstrating a success in merging value stream mapping and The Butterfly Diagram for mapping current state of information flow. It provides an insight for requirements needed for the future adoption of the digital product passport regarding traceability for an enhanced circular textile system and provides a pathway for textile management. The research further establish direction for enriching the knowledge by providing insights to future research which align with the subject.