Recent progress in textile engineering and materials science is facilitating the fabrication of smart clothes. By using fibers or sheets filled with photoluminescent perovskite composite, displays and environmental warnings might be able to produce light with minimal energy consumption. Physiological and mechanical data could be tracked by real-time sensor networks, combined with AI systems that analyze real-time health data and provide feedback. Moreover, modern humidity-responsive color-changing camouflage materials have been designed using nanoparticle-based multispectral concealment systems. Accurately mapping sports biomechanics and impact forces is possible using perovskite-doped piezoelectric composites and conductive nanowire networks. Then, using this high-resolution data, machine-learning algorithms can find ways to prevent injuries and offer personalized coaching. Multifunctional textiles have made a big difference in modern functional and health clothing. These textiles are changing from barriers that don’t move to interfaces that can use energy, track biological parameters, and provide information.