Abstract <p>The evolution of defect-based spin qubit systems is currently transitioning from fundamental studies and proof-of-concept demonstrations into applications in the burgeoning field of quantum technology. Within this context, new challenges emerge, in particular, the need to understand and engineer the fundamental materials that form the hardware building blocks critical for the scalability and wide-scale adoption of such technologies. While earlier discussions have often focused on qubits within idealized systems, major limitations on spin coherence and optical properties arise from effects imposed by the nonideality of the surrounding host matrix. Decoherence can stem from a variety of sources, including other qubits, nuclear spins, and parasitic point- and extended defects, which interact with the qubit via magnetic and electric fields, photons, phonons, and strain. In this article, we focus on the relevant sources and mechanisms through which decoherence occurs and provide potential mitigation strategies via the synergistic integration of first-principles simulations and materials synthesis and engineering. We aim to provide a tangible link between material properties and material functions thereby enabling materials-by-design.</p> Graphical abstract <p></p>