Can you recycle your old undergarments, like underwear and bras? Yes, you can. Believe it or not, Goodwill takes any condition undergarments, as long as they are clean. If they are in good enough shape, they'll sell them in their stores. If they are torn or threadbare, they get sold to scrap fabric dealers who recycle them into new cloth industrial products. But here's something you may not know: If you wear 100 percent cotton undergarments, you can compost them. Just cut off the elastic parts and cut the cotton fabric into small pieces. Toss the scraps into the compost, and in no time flat, they'll break down into beneficial mulch for your garden.