The textile industry is rapidly shifting towards sustainable practices, driven by the growing demand for sustainable solutions, based on the circular economy principles. Recycling fibres has become a key focus, reflecting the sector’s commitment to reducing environmental impact of its products. Despite significant progress has been made focused on cotton textile wastes, little is known regarding the recyclability of man-made cellulosic fibres which are increasingly used as textile fibres. In the case of lyocell fibers, the post-treatments used to reduce fibrillation may hinder fibre re-dissolution, thus creating a problem for the chemical recycling processes. Addressing these challenges, the be@t project (bioeconomy at textile project) is evaluating the reuse of lyocell fibres in wet spinning processes based on cellulose direct dissolution in NMMO and imidazolium-based ionic liquid. By examining how textile treatments influence lyocell's dissolution, structural integrity, and reuse potential, the project aims to unlock pathways for recycling this fibre type. Through this research, the be@t project technically supports and reinforces the vision of closed-loop textile manufacturing, thus contributing to sustainable industry practices. The authors acknowledge the financial support from integrated project be@t - Textile Bioeconomy (TC-C12-i01, Sustainable Bioeconomy No. 02/C12-i01.01/2022), promoted by the Recovery and Resilience Plan (RRP), Next Generation EU, for the period 2021-2026.