The textile industry is an important contributor to the growth of the global economy. However, a huge quantity of wastewater is generated as a by-product during textile manufacturing, which hinders the ongoing development of textile industry in terms of environmental sustainability. Membrane distillation (MD), which is driven by thermal-induced vapor pressure difference, is being considered as an emerging economically viable technology to treat the textile wastewater for water reuse. So far, massive efforts have been put into new membrane material developments and modifications of the membrane surface. However, membrane wetting, direct feed solution transport through membrane pores leading to the failure of separation, remains as one of the main challenges for the success and potential commercialization of this separation process as textile wastewater contains membrane wetting inducing surfactants. Herein, this review presents current progress on the MD process for textile wastewater treatment with particular focuses on the fundamentals of membrane wetting, types of membranes applied as well as the fabrication or modification of membranes for anti-wetting properties. This article aims at providing insights in membrane design to enhance the MD separation performance towards commercial application of textile wastewater treatment.