The tannery industry is characterized by the consumption of a large quantity of water, around 30–40 m3 for processing 1000 kg of hide or skin. This amount becomes wastewater, containing about 300 kg of different chemicals, mainly refractory organic compounds, with high chemical oxygen demand (COD), total dissolved salts (TDS), chromium, and evolution of toxic gases, such as ammonia and sulfides, etc. The remaining tanning chemicals are released as effluent having high resistance against biological degradation, becoming a serious environmental issue. Usually, end-of-pipe treatment is not sufficient to meet the concerns of environmental issues. In terms of cleaner production options, the redesigning of the existing effluent treatment procedures with alternate or additional treatment techniques, which “supports resource recovery with no added chemicals”, is expected to give a sustainable solution for the management of toxic effluent. The Zero Liquid Discharge (ZLD) system serves to ensure zero water emission, as well as treatment facilities by recycling, recovery, and reuse of the treated wastewater using advanced cleanup technology. The international scenario shows the implementation of ZLD thanks to pressure from regulatory agencies. The ZLD system consists of a pre-treatment system with conventional physicochemical treatment, tertiary treatment, softening of the treated effluent, reverse osmosis (RO) treatment for desalination, and thermal evaporation of the saline reject from RO to separate the salts. By adopting this system, water consumption is reduced. Moreover, ZLD also becomes effective in disaster mitigation in areas where the tannery industry is a strong economic actor. With this review, we aim to give an outlook of the current framework.