With the growing frequency and quantity of clothing purchases, the elimination rate of waste clothing is increasing. Many researchers have contributed to the topic of the recycling and reuse of waste clothing, and therefore many related literature reviews are emerging. The current reviews only focus on waste textile recycling and waste-clothing life-cycle evaluation. The topic of waste-clothing recycling itself is ignored. In this article, we propose a systematic review of the recycling and reuse of wasted clothes. Firstly, we summarize the existing methods of waste-clothing collection and recycling and the related recycling technology, and discuss their advantages and disadvantages. The involved literatures are journal articles, book chapters, and conference papers selected from Google Scholar and Web of Science. Citespace software, as a literature visualization tool is used for the analysis. Based on this review, the low efficiency of waste-clothes recycling can be attributed to poor organization from a management aspect. From a consumer perspective, because of the differences in understanding among consumers about waste-clothing recycling, the existing clothing-recycling system cannot be fully utilized. The results of this review provide reference for further research on waste-clothing recycling, and make suggestions for the relevant governmental/industrial development strategies.