Recent years have witnessed the pivotal role of nanotechnology in shaping the landscape of smart fabric design. Nanomaterials have emerged as integral components, introducing sustainable attributes such as antimicrobial, ultraviolet resistant, electrically conductive, optical, hydrophobic, and flame-retardant properties into textiles and garments. The integration of nanomaterial-based smart devices into textiles has further expanded functionalities, encompassing energy harvesting and storage, sensing, drug release, and optics. Beyond the fashion industry, these advancements hold promise for applications in defense, healthcare, and on-body energy harnessing. This review aims to provide a comprehensive overview of the current trends in utilizing nanotechnology within modern textile industries, serving as both an informative resource and a catalyst for future research endeavors. Focusing on on-body electronics, the review delves into the potential of nanomaterials in achieving total energy reliance through innovative textile applications. Key scientific concepts explored include methods for nanomaterial functionalization and integration into textiles, with a keen emphasis on cost-effectiveness, comfort, wearability, energy conversion efficiency, and eco-sustainability. Recent developments are in nanogenerators, super capacitors, and photo electronic devices integrated into fabrics, with a specific focus on their efficiency and wearability. The discussion extends to possible remediation measures. Finally, the paper outlines the future outlook, envisioning further progress in the integration of smart nano-devices onto textile fabrics.