The present review has attempted to describe the potential of tea leaf extract as an anti-pest, antimicrobial, and natural colorant in textiles. Moreover, an in-depth description of the chemical components present in tea leaf extract and their contribution has been discussed in this study. The review presents significant evidence that suggests tea leaf extracts as potential color generators for various textile fibers such as wool, silk, cotton, and more. However, in spite of numerous advantages, it was found that the tea leaf extracts comprise certain challenges, including inconsistency, scalability at the industrial level, and the like. More research effort should be explored to develop a standardized work process that can overcome such challenges and make it suitable for industrial applications. Although numerous reports suggested that topical treatment of tea leaf extracts has shown excellent antimicrobial and anti-odor functionalities. However, literature available on the tea leaf extracts and their potential use in the coloration of textiles is very limited, and it has great potential to add substantial value to dyeing, printing, and finishing in the allied field of textiles and fashion. The aim of the present review is to encourage researchers, industry personnel, and other stakeholders to undertake intensive research endeavors to standardize and develop an upgraded pretreatment and extraction process for the inference of biologically active and coolant-content cotton extracts to accomplish the desired functional property.