Functional fibers, retaining nanoscale characteristics or nanomaterial properties, represent a significant advance in nanotechnology. Notably, the combination of scalable manufacturing with cutting-edge nanotechnology further expands their utility across numerous disciplines. Manufacturing kilometer-scale functional fibers with nanoscale properties are critical to the evolution of smart textiles, wearable electronics, and beyond. This review discusses their design principles, manufacturing technologies, and key advancements in the mass production of such fibers. In addition, it summarizes the current applications and state of progress in scalable fiber technologies and provides guidance for future advances in multifunctional smart textiles, by highlighting the upcoming impending demands for evolving nanotechnology. Challenges and directions requiring sustained effort are also discussed, including material selection, device design, large-scale manufacturing, and multifunctional integration. With advances in functional fibers and nanotechnology in large-scale production, wearable electronics, and smart textiles could potentially enhance human-machine interaction and healthcare applications.