Defence personnel face multiple threats from different quarters, like terrorist groups and rogue nations, who own not only advanced lethal weapons but also chemical and biological warfare weapons. The present day protective clothing system used by the defence sector is vulnerable to modern weapons and also have some inherent weaknesses like high cost, bulkiness and discomfort in wearing. Nanotechnology-based materials offer a promising future in this area due to their extraordinary physical, chemical, mechanical, and electrical properties at nano-level. This paper outlines the various developments related to the application of nanotechnology in producing lightweight and comfortable protective clothing for the military personnel and also some new developments like sensor, energy storage, conductivity, and decontaminant fabrics.