In response to the climate challenge, an alternative economic system is gaining popularity and interest: the circular economy. The main objectives of this research is to Change behavior and spread the awareness about circular economy to reduce pressure on the environment by reducing the amounts of wastes and keeping resources in circulation to generate more environmental, financial and economic benefits. Through this research we investigated the impact of circular economy on fashion industry (circular fashion) on water and energy expenses, increasing income and decreasing cost; and the percentage of pollution.

The methodology used in this research is the quantitative method, where primary data were collected through the questionnaires. The researcher used three economical models to test the correlation between circular fashion and three dependent variables (water and energy expenses, increasing income and decreasing cost; and the percentage of pollution).

Findings: the research proved a significant correlation between the independent variable and all the above mentioned dependent variables. All of those correlations have a great reflection on environmental, social and economic performance that lead to economic development. Furthermore, the research shows how the application of circular fashion can be done in small scale (13 villages). This research acquires its importance from the fact that circular economy is very important in reaching sustainable development, and how it enhances the economic and environmental performance. Moreover, how the implementations on small scale (13 villages) support the implementations on large scale (all over Egypt) and accelerate the economic resilient development.