Despite some challenges, it is clear that guava extract can be used as a mordant in the textile industry, with many benefits from all perspectives, especially environmental alternatives for synthetic dyes. In this review, the guava leaf extract prepared has been discussed: the exact mechanism in Psidium guava leaf; the effective extraction method; the numerous tests for Psidium guava leaf. Based on the investigations carried out and satisfying dyeing with guava, the following conclusion emerges from this review: Undoubtedly, the guava plant has significant antifungal activity. The phytochemicals present in Psidium guava leaves, such as flavonoids, tannins, alkaloids, and flavone glycosides, have been used without any additional chemicals. Second, using Psidium guava leaf for dyeing or printing can significantly reduce the concentration of hazardous chemicals released into the wastewater in the textile industry. Finally, exploiting Psidium guava leaf to enhance a combination between dyeing and antimicrobial finalization enhances the potential use and demand for this natural herb and reduces environmental pollution in the textile industry, among other possibilities that could be examined in the future. In order to be ready for market uptake and large-scale practice, the profitable guava debut into the textile sector can circumnavigate some of the challenges discussed above. Multi-disciplinary studies in the field of textile finishing will continue in order to address these challenges. In addition to reducing synthetic dyes in the range of colors, research studies on Psidium guava belonging to the myrtle family can also be associated with the above work.