This paper reported a structured literature survey of research in wearable technology for upper-extremity rehabilitation. A keyword based search returned 61 papers related to this topic. Examination of the abstracts of these papers identified 18 articles describing distinct wearable systems aimed at upper extremity rehabilitation. They were classified in three categories depending on their functionality:posture and motion monitoring; monitoring and feedback systems that supported rehabilitation exercises; serious games for rehabilitation training. We characterized the state of the art considering respectively the reported performance of these technologies, availability of clinical evidence, or known clinical applications. Based on the insights from the review study, we proposed a smart rehabilitation garment system for variety of patient groups. The garment integrated with smart textiles and wearable electronics. It presented real-time feedback as a vibra-tion delivered through the garment, visual and audio instructions through Android-hand held device (smartphone or tablet).