Textile electronics addresses fibers or fiber assemblies with electronic functions to generate, transmit, modulate, and detect electrons. Interactive textile electronic devices may provide suitable platforms for virtual reality (VR)/augmented reality (AR) applications because of their excellent performance and unique immersive features such as lightweight, handiness, flexibility, comfort, and low strain even under high deformations. This paper presents a systematic review of the literature on the state‐of‐the‐art of interactive devices, fabrication technologies, system integration, promising applications, and challenges involved in textile‐based VR/AR systems.