The Textile, Apparel, and Fashion (TAF) industries significantly contribute to national gross domestic products but also account for 20% of global pollution. The Industry 4.0 (I 4.0) framework, incorporating technologies like the Internet of Things (IoT), Artificial Intelligence, and robotics, enables smart and efficient manufacturing production, leading to more significant economic outputs. However, it also brings about issues like automation-related tensions, energy efficiency, and waste management and other sustainable practice demands. The Industry 5.0 (I 5.0) framework addresses the issues created by Industry 4.0 in many areas, especially promoting human-centric sustainable practices, social interaction, and a proper synergy between man and machine. This article examined the issues closely based on a systematic review of 42 peer-reviewed studies from 2013 to 2023 exploring the dynamics between technological advancements and sustainable practices in the TAF industries. The review identified technological implementations, circular economy support, and challenges associated with implementing the I 4.0 and 5.0 frameworks. The article analyses significant research using a descriptive literature review to understand the strategies, impact, and challenges of digitalisation and green transition in TAF industries' production and sustainability. The findings reveal a big dichotomy between the Global North and Global South TAF firms, indicating a more contextualised approach is required to integrate I 4.0 and 5.0 approaches and promote sustainable production practices. This study offers a synthesised overview of the current landscape, providing insights for stakeholders, policymakers, and researchers engaged in navigating the TAF industries towards a sustainable, digitally advanced, circular economy future.