The global fashion and textile industry operates on a linear “take-make-waste” model, thus creating a clear need for sustainable and circular transformation. The consumer adoption of sustainable products plays an essential role in enabling this significant paradigm shift. However, research on the perception of sustainable fashion often focuses on marketing messages and specific product claims. Since the product is not always accompanied by these explicit messages across its lifecycle, it is necessary to better understand the perception and particularly the aesthetics of the product itself to derive practical implications for making sustainable fashion the new norm. We used a systematic review of research in psychology and adjacent fields to create an overview of existing knowledge, employed methods, and research paradigms used. In the covered research, aesthetic differences are explored between product components like natural and synthetic fabrics, dyes and finishing technologies. The effects of the product in its entirety are also covered, providing insight into the effects of e.g., classical or zero waste design. Moreover, the selection of product groups is shown to play a role in consumer perception, due to factors like familiarity or proximity to skin. The adopted research methods span a wide quantitative and qualitative range with research interventions at the design stage, final product pre- and post-sale. Beyond outlining key aspects of previous literature, this article provides an outlook for future interdisciplinary experimental research about product design as a means to understanding and navigating the transition to a more circular industry.