The fashion industry is a lucrative market that generates revenue in the trillions through the production and distribution of clothing, footwear, and various accessories. The apparel industry has experienced a remarkable expansion in the past few years, evidenced by a 100% increase in output between 2000 and 2023. The apparel industry makes a substantial contribution to the negative impacts of biodiversity loss and climate change. The fashion industry’s expansion and social and environmental sustainability concerns, catalyzed by digitalization, are propelling it toward a sustainable trajectory. The present review article centers on the primary issues faced by the fashion industry and the utilization of metaverse technologies to tackle sustainability challenges within this sector. The metaverse refers to the amalgamation of physical and digital space within a virtual world, commonly referred to as the meta-universe. The metaverse is a strategy that is anticipated to be employed in fashion e-commerce and retailing, aiming to facilitate consumer decision-making processes, ranging from user experience to customer experience. This approach is expected to confer considerable competitive benefits. This review paper aims to analyze the sustainable impact of the metaverse on the fashion industry and foster discourse among researchers and industry professionals.