Use of natural compounds in textiles industry for coloring and finishing is not an avant-grade practice but it has been a part of ancient practice in textile manufacturing. However, currently used practices in textile words majorly use synthetic products and compounds and everyday piling the environment with tons of hazardous chemicals. The readvent of natural materials for textile functionalization to replace synthetics and harmful products from textile industry is the need of hour. Natural dyes from plants (madder) and animals (lac) have been used since ancient times for textile dyeing. Many other natural dyes have been explored with various functional properties such as antimicrobial, antioxidant, and coloration simultaneously on textile materials. The search of new and eco-friendly products for fabrics finds lichens as a promising yet unconventional option to produce colorants. This chapter gives an insight of lichens producing compounds for textile industry and suggesting the new approaches for futuristic developments in lichen driven products.