Wool fiber is a natural protein fiber, which is used for the manufacturing of apparels, and floorcoverings because of its excellent fire retardancy, stain-resistance, antistatic and odor control properties along with exceptional warmth and resilience. However, wool fiber has several serious demerits, such as garments made of wool fibers extensively shrink during their laundering. To overcome this problem, wool fibers, especially those are used in apparel, are frequently shrink-resist treated to make them machine-washable. A wide range of treatments including oxidative, enzymatic, radiation, polymeric coatings, sol-gel coatings, and plasma treatments have been investigated to make wool fiber shrink-resistant. In this review, the mechanisms of wool fiber shrinkage, the research carried out until recently to make wool fiber shrink-resistant, and the current status of the sustainable alternatives developed, have been compiled and presented. The various methods investigated have been critically discussed with their merits and demerits, shrink-resist performance, and their shrink-resistance mechanisms. The chemistry and synthesis of various polymers used for the shrink-resistance and their reactions with wool fiber have been outlined. This review also includes the current challenges to make shrink-resist treatments green and sustainable, and also the future directions to meet these challenges. Some of the treatments investigated may affect the biodegradability of wool fibers, especially those are based on coating with synthetic polymers. A sustainable alternative polymeric coating based on sustainably produced polymeric resins, especially bio-based resins, needs to be developed so that the future treatments become sustainable.