The fashion industry has faced increasing criticism for its unsustainable practices and needs to transition towards more circular models where renewable resources are used, and materials and chemicals are recycled. This study focuses on abundantly available mixed cellulosic wastes: mixed textile, agricultural residues and municipal solid waste, whereby half of the cellulose from the waste is converted through a hydrolytic process and fermentation into bacterial cellulose. Using ionic liquids, the feasibility of spinning the waste-derived cellulose produced into regenerated cellulose fibres with mechanical properties comparable to viscose is achieved. Furthermore, the sustainability of this approach is validated by comparing the environmental impact of the process with the impact of producing wood dissolving pulp, which is currently used to make viscose. The possibility of a biological recycling process for mixed cellulosic wastes that could complement textile mechanical or chemical strategies is discussed, but further work will be needed to validate its economic viability and sustainability at the scale required to replace feedstock used in regenerated cellulose production. The biobased and chemical approach to textile manufacturing described here is circular, supports textile-to-textile recycling offering a potential solution to textile waste management and a promising pathway for the industry to achieve its environmental goals.