The wide application of new information and communication technologies (ICTs) has been argued to be critical in local economic development, while the application of new ICTs will affect the development of industrial cluster, especially those small and medium-sized enterprises (SMEs).This paper examines Yangxunqiao textile cluster located in Zhejiang Province as a case study to focus on the role of ICTs in the sustainable development.We argue ICTs application in firms boost flexible and customized production approach, improve e-commerce market channel and raise supply chain management.We also pay special attention to the spatial imphcation of ICTs adoption in industrial cluster, and suggest that application of ICTs tend to lead to further clustering of SMEs in the location with mature production chain.Our analysis shows that new ICTs are a facilitator in the sustainable development of the industrial cluster.