The purpose of this study is to explore how textile and apparel manufacturers understand and implement circularity within their operations. It aims to examine the current circular practices adopted by manufacturers in the industry and to identify the key challenges and opportunities manufacturers encounter in enhancing circularity in the textile and apparel industry. A qualitative research approach was used, based on semi-structured interviews with twelve textile and apparel manufacturers in Bangladesh and Sri Lanka. Thematic analysis was guided by the Supply Network Configuration (“SNC’’) theory to examine circularity at four levels: product, process, network, and supply chain. The study finds that circularity is currently practiced in limited and uneven ways across the industry. Common practices include fabric reuse and recycling, process-level waste reduction, and limited closed-loop initiatives. Significant barriers remain, including high costs associated with circular initiatives, inadequate infrastructure to support circular operations, insufficient investment and technological limitations. However, manufacturers also identify substantial opportunities, particularly in product design innovation, supply chain integration, process optimization, and market positioning. This study is based on insights from twelve manufacturers in Bangladesh and Sri Lanka, which may not fully reflect the broader industry. It focuses on fabric and apparel production, excluding upstream actors like fiber or yarn producers. As a qualitative study, the findings offer depth but are not statistically generalizable. These limitations point to opportunities for broader, more inclusive future research. The study provides actionable insights for manufacturers, industry stakeholders, and policymakers. Understanding current practices enables targeted interventions to scale circular initiatives. The findings support strategic planning for more resilient and sustainable manufacturing operations. This study contributes original empirical insights into how manufacturers in key textile hubs perceive and implement circular economy principles. By focusing on current practices, as well as perceived barriers and opportunities, it fills a gap in the literature on circular transformation in textile production contexts. The use of qualitative insights from Bangladesh and Sri Lanka, two key but underrepresented textile-producing countries, adds unique empirical value, showing how global sustainability expectations impact manufacturing hubs with limited infrastructure and financial flexibility.