This study proposed a base framework for creating sustainable designs with textile production waste and unused neckties with the “design thinking” approach, which is an iterative process. It aimed to set an example of how fashion designers can plan and manage their clothing design processes in a more sustainable way by recycling textile production scraps and unused neckties into unique clothing pieces with the upcycling method. Unused neckties and upholstery scraps were turned into skirts, blouses, and dresses by using creative techniques in line with current fashion trends. In addition, the five-stage iterative design process followed was explained, and the way in which the waste textile materials gained value by being converted into unique garments was discussed in terms of the user and the designer. Through the study, it was observed that the smallest amount of textile waste can be transformed into upcycled clothing via the iterative process, and original, value-added products enjoyed by consumers can be created. In addition, it was observed that the design thinking approach improves the understanding of the context of the problem, creativity in the generation of insights and solutions, skills to materialize those solutions through iterative prototyping, and the ability to combine these factors. Promising ideas to help designers develop recycling strategies were also provided.