In the modern world, the fashion industry is constantly evolving, and digital technologies are having an increasingly significant impact on its development. Therefore, the research relevance is determined by the need to explore the features of modern digital fashion concerning the commercial aspect, ethical issues and concept of sustainable fashion. This research aims to predict the prospects for the development of digital fashion in the fashion and design industry, and is based on the following methods: analytical, comparative, generalisation and systematisation methods. The study results showed that digital fashion is becoming increasingly popular among well-known brands, designers and fashion houses, while the commercial use of digital fashion is expanding thanks to the non-fungible token (NFT) platform and other digital tools. At the same time, the research also identifies ethical issues related to the protection of intellectual property in digital reality. Furthermore, the research analyses the segmentation of the digital fashion market and forecasts the development of this industry until 2030 and beyond. In terms of the relationship with the concept of sustainable fashion, it is found that digital fashion can contribute to sustainable development by reducing the use of physical resources and preserving the environment.