Application of Industry 4.0 (I4.0) in fashion and textile industries helps to produce high quality products at a cheaper price. Further, the use of digital technologies covered under I4.0 in fashion and textiles has several benefits for the planet and people while making profit. Digital technologies can be helpful to achieve the triple bottom line of sustainability, which relates to the planet, people, and profit. The implementation of digital technologies can help to improve the efficiency and productivity, improve the quality of the products, and reduce process and material waste. However, there are several downsides of using digital technologies, which needs to be addressed to make the technology adoption popular among the businesses. This chapter will discuss the major challenges of using digital technologies, which include high initial investment cost, high running and maintenance cost. The lack of skilled staff and infrastructure to accommodate the digital technologies during operation is another major challenge. There are other issues relating to the cybersecurity, failure of the IT system, compatibility issues, and lack of digital culture in many organisations. Various ethical issues, such as data privacy, lack of legal policies, and legal issues, are also some of the challenges that need to be overcome for making the digital technology successful in fashion and textile industries. This chapter also involves some of the findings of a survey conducted with Vietnamese fashion manufacturing industries. The survey revealed that digital technologies can produce quality products at cheaper price; however, they can also lead to elimination of local craftsmanship in addition to job losses.