Every person struggles with the decision of what to wear almost every day. People of all ages spend a considerable amount of time daily selecting appropriate clothes to make themselves appear more attractive. Choosing the appropriate outfit for the activity/function can be frustrating and time-consuming. The study aims to propose a smart wardrobe system using AI and IoT to enhance clothing management, sustainability, and personalized fashion choices. A double-diamond design framework (discovering, defining, developing, and delivering) was used to propose the solution. The methodology of the study includes surveys, expert interviews, and case studies to explore how consumer behavior, sustainability, and technology influence wardrobe management. The key findings of the study highlight the acceptance of the proposed smart wardrobe systems, with users emphasizing the need for effortless organization, personalized outfit suggestions, and sustainability features for improved wardrobe management. The high-fidelity prototype of the proposed smart wardrobe system received a high system usability score of 88.75. It is expected that the proposed system will revolutionize garment management by providing people with individualized clothing suggestions that are convenient and sustainable.