This study aims to explore how integrating Product Lifecycle Management (PLM) capabilities into the new fashion product development process can foster sustainability. The aspects that triggered this research are that the fashion sector has a detrimental impact on the environment and there is limited attention on the role of PLM in fostering sustainability. To address the research aim, a qualitative research approach with abductive reasoning was adopted, owing to the explorative nature of the study. Data were collected using semi-structured interviews with seven fashion brands having origins in England, Spain, Germany, and Italy. A convenience sampling method was employed to select fashion brands for data collection. Interview data were analysed thematically by applying the dynamic capability theory as the theoretical lens. The study findings revealed that integrating PLM into new product development can foster sustainability in four key ways: digital coordination for co-creation, sustainable raw material selection and lifecycle assessment within PLM, minimisation of waste, and development of innovative approaches. Digital coordination through co-creation platforms and real-time communications helps overcome traditional barriers to collaboration, such as miscommunication and slowness of feedback, creating more aligned operations. The PLM systems’ material selection options directly impact sustainability because they support designers in making smart choices from the outset. LCAs embedded within PLM systems can also help with decision-making by measuring the impact of products upon the environment from their conception to disposal. Fashion brands can make informed decisions about material selection, and design impacts far earlier in the product-development process than was previously possible through embedding lifecycle assessment (LCA) data. Additionally, resistance to change was identified as a threatening force to the effective implementation of PLM tools. The study recommended that fashion brands incorporate their sustainability goals into PLM and invest in training programs to educate employees on using PLM tools to foster sustainability.