Digital technologies are transforming the sustainable fashion movement by empowering new material developments and ethical production systems that aim to reduce the damage to our natural environment. In this chapter, the role of digital technologies in sustainable fashion is explored in terms of artificial intelligence (AI), blockchain, 3D printing and digital design systems. Significant changes are taking place, including AI based material discovery, digital fabrication, e.g. 3D knitting and a blockchain based material transparency software to immediately reduce resource depletion, textile waste and carbon production. Sustainable options are open through digital fashion and virtual sampling, opposing conventional production and consumption systems. Going beyond a purely practical approach, the chapter offers a theoretical perspective on the intersection between digital technologies and sustainability in fashion, informed by the innovation diffusion and circular economy theories. Through industry trends and case studies, it also demonstrates how digital tools contribute to sustainable material development and ethical production. The chapter also discusses challenges such as cost of digital infrastructure, opposition from the industry, and ethical concerns of automation. In addressing these concerns, the conversation connects to United Nations Sustainable Development Goals (SDG 9 Industry, Innovation and Infrastructure; SDG 12 Responsible Consumption and Production; and SDG 13 Climate Action) and highlights the possibilities for digital technologies to play a role in systemic transformations of material sourcing, production and consumption across the fashion industry.