The coat, designed by C.VOX (Communiqué Vox), features a top-of-the-range sound system, but is fully wearable and machine washable.
Alongside playing music, it also acts as a hands-free system for mobile calls. The manufacturers say that the coat offers a way to enjoy music in the go, but stay safer against street crime.
Features on the jacket include a connector point compatible with all mobile phones and MP3 players, enabling the wearer to connect and conceal their device.
The coat has a built-in washable speaker and microphone, while the control system on the sleeve allows the wearer to pause, skip and play music, as well as answer and hang up phone calls on a mobile.
The earphones are wired through the jacket and concealed in the collar to avoid them getting tangled.
C.VOX and Debenhams noted that the coat could offer some protection against street crime by enabling the user to hide their technology.
Official figures suggest that cases of street muggings and pick pocketing, where mobile phones were stolen, have risen by 25% in three years.
According to insurer LV, 264 mobile phone thefts were reported every day over the first eight months of this year, up 7% on figures for 2011.
Paul Baldwin, the head of menswear buying at Debenhams, said that the retailer was "thrilled to be offering such an innovative product to our customers".
He said that the jacket offers a "perfect, safety-conscious way to conceal gadgets whilst still being able to freely use them in public; it's the must-have item for any commuter."
Peter Layzell, a spokesperson for C.VOX, said that the jacket was created to "push the boundaries in functional technology and fashion".
He added: "We look forward to developing and launching new clothing lines with the latest innovations and trends for the coming seasons."
The stereo system jacket goes on sale today (November 26) at Debenhams stores nationwide and online, priced at £33 for the kids version or £65 for the adult male coat.
C.VOX said that its product range for men and kids will extend to jackets, gilets and hooded sweatshirts, which will all incorporate the wearable audio technology.