The traditional characteristics of luxury fashion, which include exclusivity and high quality alongside status, are changing because of shifting consumer preferences among Millennials and Gen Z. This study investigates how these generations define luxury, the role of social media in shaping their perceptions, and the importance of sustainability and ethical practices in shaping their perceptions. A descriptive research design has been used in the study and primary data was gathered using survey method from 200 participants (100 Millennials and 100 Gen Z) via a structured online questionnaire. Non-probability quota sampling was utilized for the selection of the samples for the study. Descriptive statistics, the Shapiro-Wilk test for normality, and the Mann-Whitney U test for group comparison were used to analyze the data. The research shows that Gen Z values price, personalization, status and prestige, investment potential and influencer endorsements more than Millennials but both generations perceive brand reputation, exclusivity, quality and craftsmanship, social media factors and sustainable practices similarly. The study suggests luxury brands should adopt sustainability, exclusivity and social media engagement to stay relevant in the rapidly changing market because conscious consumerism is transforming the industry.