Worldwide demand for man-made cellulosic fibres (MMCF) are increasing as availability of cotton fibre declines due to climate change. Feedstock for MMCF include virgin wood, agricultural residues (e.g., straw), and pre- and post-consumer cellulosic materials high in alpha-cellulose content. Lyocell MMCF (L-MMCF) offer large advantages over other MMCF processes in terms of both environmental and social impacts: the solvent for cellulosic dissolution, n-methyl-morpholine-n-oxide, can be recycled, and the process utilizes non-toxic chemicals and low amounts of water. Hemp can be a preferential cellulosic feedstock for L-MMCF as hemp cultivation results in carbon dioxide sequestration, and it requires less water, fertilizers, pesticides, and herbicides than other L-MMCF feedstock crops. These factors contribute to hemp being an environmentally conscious crop. The increased legalization of industrial hemp cultivation, as well as recent lifts on cannabis restrictions worldwide, allows accessibility to local sources of cellulose for the L-MMCF process. In addition, hemp biomass can offer a much larger feedstock for L-MMCF production per annum than other cellulosic sources, such as eucalyptus trees and bamboo. This paper offers perspectives on the agricultural, manufacturing, and economic opportunities and challenges of utilizing hemp biomass for the manufacturing of L-MMCF.