Dogs play a crucial role in maintaining law and security in a country, particularly in search and rescue (SAR) and detection operations. However, working dogs often face health challenges in extreme climates, such as hypothermia and fatigue. Considering their significance in police and military forces, it is essential to prioritize their comfort, safety, and situational awareness during field operations. Existing solutions fall short of meeting these requirements, relying solely on the dog–handler relationship and training. To address these limitations, this research focuses on the development of a smart vest. It incorporates microencapsulated phase change material (PCM) that regulates a dog’s body temperature in both hot and cold environments. SEM and DSC were performed to establish the effectiveness of PCM. Additionally, advanced features like heart rate sensors, temperature sensors, GPS, and cameras are integrated to monitor the dog’s well-being comprehensively. By providing an effective solution that caters to the specific needs of working dogs, this research aims to enhance their performance and ensure their overall welfare in demanding operational scenarios.