Electronics in “wearable systems” or “smart textiles” are nowadays mainly realized on traditional interconnection substrates, like rigid Printed Circuit Boards (PCB) or mechanically flexible substrates. The electronic modules are detachable to allow cleaning and washing of the textile. In order to achieve a higher degree of integration and user comfort, IMEC-UGent/CMST developed a technology for flexible and stretchable electronic circuits. The electronic system is completely embedded in an elastomer material like PDMS (silicone), resulting in soft and stretchable electronic modules. The technology uses standard packaged components (IC's) and meander shaped copper tracks, so that stretchable systems with complex functionality can be achieved. Testing methods for washability were selected and developed. First tests are showing promising results, leveling the path to washable electronics in textiles. In order to show the possibilities of the technology in the field of textile applications a 7x8 single color stretchable LED-matrix was designed and integrated in textile. This LED-matrix can be applied for example in wearable signage applications.