The transformative shift towards sustainable textiles with functional performance has led to the development of smart and sustainable textile materials driven by environmental responsibility and advancements in technology. Smart textiles combine the unique technologies of actuators, sensors and energy harvesting for enhanced functionalities and applications in health monitoring and wearable electronics. Most often, textile materials meant for smart physiological measurement are designed to be eco-friendly, biodegradable, and recyclable, thus promoting circular economy and reducing carbon footprint. The integration of sustainable textiles with functional performance highlights a unique paradigm for advancing smart technology with sustainable materials that foster responsible and ethical practices in the environment. The evolution of smart and sustainable textile materials presents great future fashion opportunities that align with ethical and environmental innovations, coupled with intelligent abilities. Despite these benefits, several challenges remain that could affect the full adoption of these materials in the fashion industry. In this chapter, we discuss types, properties and applications of smart and sustainable textile materials in future fashion in three (3) core areas: smart textiles, sustainable textile materials, and integration of sustainable textiles with functional performance. The ethical considerations of these smart and sustainable textile materials in future fashion are also discussed to provide an overview of core areas for innovative solutions. Examples of real-world case studies of applications of smart and sustainable textile materials by brands in the industry will be discussed. The chapter concludes with some insights into promising areas for future studies and policy directions that can significantly contribute to a responsible and sustainable future in the textile and fashion industry.