Background:   The demand of textiles and clothing is constantly increasing; as a result the post-consumer textile waste increase as well. This point is bringing the focus on creating the value from waste by recycling. Sweden, municipalities are responsible for handling the textile waste that is currently categorized as the household waste. The post-consumer textile when disposed is mixed with the other household waste, which eliminates the commercial value of the material Purpose:          The purpose of this study is to explore the current system in Nässjö municipality to manage post-consumer textiles and identify the possibilities for value creation through reverse logistics processes.  Method:          To fulfil the research purpose a qualitative study employing single case is used. Study caters multi-perspectives from different actors i.e. municipality, logistics service providers and consumers. Purposive sampling is used to select the respondents from each actor seeing their position in the companies and knowledge on the subject. Primary data is gathered by conducting 11 semi-structured interviews and field visit to the waste collection site. Secondary data is obtained using web sources and also from different project reports from government and other agencies. The empirical data is categorized and then analysed by thematic analysis with the developed theoretical framework of systems’ theory. Findings:         Legislation to collect textiles as the separate entity and put it in the reverse logistics system is on the way. Today, input in the system is very low due to the unawareness of consumers about the available options. Municipality is processing the waste as a normal household waste and it is incinerated to produce energy for the residents.  LSP are coordinating with municipality and tend to increase their resources for effective participation in the new system. Municipality requires strategic changes to meet the coming legislative requirements. Conclusion:     A sub-system could be developed for post-consumer textile in Nassjo municipality. Input in the system has to be determined by consumers education and convenience. Municipality has to define their roles for manage sub-system effectively. The study has provided the rich description of potential possibilities in this context.