The global apparel industry is experiencing rapid transformation due to technological advancements and the increasing adoption of automation in manufacturing systems. Smart garment manufacturing machinery has emerged as a critical driver of productivity, operational efficiency, and quality improvement in textile production. This study investigates the impact of advanced garment manufacturing machines—including automated stain removal systems, fabric lay machines, smart hanger line systems, computerized sewing machines, and automated finishing equipment—on operational efficiency and productivity in apparel manufacturing units. A mixed-method research design was employed, combining observational analysis of production processes with quantitative productivity assessment. The findings reveal that automation significantly reduces cycle time, improves seam quality, minimizes material wastage, and enhances production throughput. Statistical analysis shows productivity improvements ranging from 30% to 55% depending on the level of automation. The results also highlight the importance of digital monitoring systems and automated material handling technologies in achieving lean manufacturing and Industry 4.0 transformation in apparel production. The study concludes that integrating smart manufacturing technologies provides strategic advantages for apparel manufacturers seeking global competitiveness and sustainable production practices