At the present time the disposal of industrial wastes has become a challenge for most countries. This research aims to study the effect of mixing the industrial textile sludge on geotechnical properties of collapsible soil. The experimental program studies the effect of textile wastes on Atterberg limits, collapse potential, compaction, CBR, and shear strength parameters. The percentages of textile wastes mixed with soil are 4, 8, 12, 16, 20, and 24 %. The results indicated that the collapse potential of untreated soil is significantly decreased from about 11% to 2.6% at 24% of textile sludge. Shear test results show an increase in cohesion and decrease in the internal friction angle. For Atterberg limits there was an increase in liquid limit. For Compaction results, it is noticed a decrease in maximum dry density and an increase in optimum moisture content. CBR values for all samples indicates the suitability of using soil and soil-sludge mixtures only in subgrade layer of pavement. It was found that the reuse of textile sludge with collapsible soils considers an economic method to improve the physical and mechanical properties of the soil, in addition, it could be considered as sustainable management of textile sludge which leads to a reduction in the consumption of natural resources and preserves the surrounding environment through decreasing the retention of these wastes to a minimum