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The textile processing industry of Pakistan has a great potential of improvement in resource consumption in various production processes. One major concern is the heavy usage of caustic soda (sodium hydroxide) especially during the mercerization process which incurs a significant cost to a textile processing mill. To reduce the unit fabric production cost and stay competitive, the industry needs to minimize the caustic wastage and explore the caustic saving potential. This paper describes the detailed caustic consumption practices and saving potentials in woven textile sector based on the data base of 100 industries. Region wise caustic saving potential is also investigated. Three caustic conservation options including process improvement, reuse and recycling, and caustic recovery plants are discussed. Detailed technical and financial requirements, saving potentials and paybacks of these options are provided.