This chapter explores the complex interplay between fashion psychology, gender identity, and sexual orientation, highlighting how clothing operates as a medium of self-expression, resistance, and social negotiation. Drawing on psychological theories and cultural perspectives, the chapter traces the historical evolution of gendered fashion, critiques binary norms, and underscores the rising influence of unisex and gender-neutral fashion. Through examination of the LGBTQ+ community’s fashion practices, it reveals how clothing can both affirm identity and help conform to community expectations. Concepts such as enclothed cognition are used to explain how fashion influences both self-perception and social perception. The chapter also addresses the role of fashion in challenging traditional gender constructs and promoting inclusivity, noting the shift in consumer behaviour, particularly among younger generations. Emphasising the need for a more nuanced and inclusive fashion system, it advocates for research that better captures the experiences of transgender, non-binary, and queer individuals. Ultimately, fashion is positioned not merely as an aesthetic but as a powerful social and psychological force that reflects and reshapes identity, offering pathways for visibility, empowerment, and societal transformation.