Smart textiles recently reaped significant attention owing to their potential applications in various fields, such as environmental and biomedical monitoring. Integrating green nanomaterials into smart textiles can enhance their functionality and sustainability. This review will outline recent advancements in smart textiles incorporating green nanomaterials for environmental and biomedical applications. The article highlights green nanomaterials’ synthesis, characterization, and applications in smart textile development. We discuss the challenges and limitations of using green nanomaterials in smart textiles and future perspectives for developing environmentally friendly and biocompatible smart textiles.