["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nWe investigate how the perceived value of recycled textile materials evolves across the consumption cycle, a key issue for recycling‐based strategies seeking to close the loop in the fashion industry. We employ a qualitative design combining an exploratory study and a longitudinal study with three interview waves, in which participants interacted with a garment containing recycled textile materials. Findings reveal a dynamic mechanism through which value is created and/or destroyed via the interplay of representation and perception: (1) anticipated value before use, shaped by representations of recycled materials, products, and recycling processes; (2) value reconfiguration in use, emerging from embodied perceptions through body‐to‐mind and mind‐to‐mind dynamics; and (3) value reconfiguration in postuse, where perceptions influence cascade trajectories and disposal. We contribute theoretically by conceptualizing the “dynamics‐of‐value‐in‐consumption,” reframing consumer engagement as a process unfolding across the consumption cycle, and identifying managerial levers to strengthen engagement and circularity across the fashion ecosystem.\n"]