This chapter explores the transformative potential of biofabricated textiles in revolutionizing the fashion industry by integrating biotechnology and advanced material science. It examines the development of multifunctional lab-grown textiles with properties such as flame retardancy, UV protection, hydrophilicity or hydrophobicity, and enhanced wearer comfort, while ensuring wash durability and eco-friendliness. Derived from bio-based sources, these materials offer sustainable alternatives to conventional textiles, addressing environmental concerns such as resource depletion, carbon emissions, and chemical pollution. The chapter highlights the scientific principles of biofabrication, including microbial systems, cellular agriculture, and synthetic biology, to produce smart and e-textiles with tailored functionalities. These innovations align with circular fashion principles by being biodegradable and reducing reliance on non-renewable resources. Challenges such as scalability, cost efficiency, and supply chain integration are critically analyzed, alongside the role of interdisciplinary collaboration in advancing the field. The socio-economic implications of lab-grown textiles are also discussed, emphasizing their potential to create new markets, promote ethical practices, and enhance consumer awareness. By combining cutting-edge biotechnology with sustainable design principles, this work positions lab-grown textiles as a cornerstone of future fashion, underscoring the need for continued innovation, investment, and regulatory support to realize their full potential.