The global production of synthetic fibres continues to rise, with polyester being the dominant material in the clothing industry. However, fully bio-based alternatives remain expensive or are not yet available at an industrial scale. In a joint research project involving Falke, industry partners, and the Institut für Textiltechnik der RWTH Aachen University, bio-based polyethylene—a widely available and recyclable polymer—is being used to develop spun-dyed and textured yarns for textile applications. By developing compounds, sustainable colour masterbatches, and innovative textile finishing techniques, new materials are created that offer an environmentally friendly alternative to conventional synthetic fibres. Initial trials have already demonstrated the feasibility of producing biobased PE yarns, with further development focusing on garment production. The textiles are equipped with elasticity through a post-treatment process. Certified raw materials ensure sustainability and enable the use of biobased polyethylene in the mass market. The successful development contributes to the research and implementation of innovative, resource-efficient materials, aligning with Falke’s commitment to advancing sustainable textile solutions. This approach provides a competitive advantage and contributes to a more sustainable textile industry.