Laser-induced graphene (LIG) presents a promising route toward next-generation smart textiles by enabling direct patterning of conductive materials onto textiles through a single-step laser writing process. In particular, femtosecond laser-based fabrication offers high-resolution processing without damaging substrates. This review summarizes LIG formation mechanisms, laser manufacturing parameters, physical/chemical characteristics, electrical, thermal, and optical properties of LIG. Furthermore, it categorizes representative applications including biosignal monitoring, energy storage, thermal regulation, optical absorber, and extraterrestrial adaptability, all based on textile-integrated LIG. With its porous morphology, high conductivity, and structural versatility, LIG offers outstanding multifunctionality for smart textile applications. Future research should explore precise functional tuning of LIG through laser parameter optimization, accurate characterization of LIG, and advanced smart textile applications.