The growing popularity of the thrifting trend in Indonesia reflects a shift in consumer behavior within the fashion industry, particularly among the younger generation, or Gen Z. Thrifting is viewed as a more affordable and sustainable alternative to conventional fashion consumption, as it offers branded products at low prices along with unique and diverse styles. In addition to being influenced by economic factors, the rising trend of thrifting is also driven by the development of social media, which accelerates the spread of fashion trends and changes in people’s lifestyles. The increase in used clothing imports has economic implications for the local fashion and textile industries in Indonesia. This study aims to analyze the economic impact of the thrifting trend on the local fashion industry and the national economy in Indonesia, as well as to examine government policies regarding the ban on used clothing imports. This study employs a qualitative method using a literature review approach, analyzing scientific articles, government reports, policy documents, and various relevant secondary data on thrifting, the textile industry, and consumer behavior. The results indicate that thrifting has positive impacts, including the creation of business opportunities, alternative income sources for the community, and the growth of sustainable consumption. However, the rise in imported thrifted goods also raises concerns regarding the weakening competitiveness of the local fashion industry, a decline in demand for domestic products, a decrease in textile production, and its impact on the textile industry’s labor sector. In response, the Indonesian government has implemented several policies banning the import of used clothing to protect the domestic industry. However, these policies must be balanced with efforts to strengthen innovation, product quality, and the competitiveness of the local fashion industry to ensure the sustainability of the domestic industry amid the growing trend of thrifting