Need to parent the cloth to the armature.girl instead of the girl mesh. Also needs weights to be parented to the armature.girl.
I believe it will be better if you have the elbow bones behind the character instead of in front of the character.
Oh I sent you wrong file. I did parented the cloth to the amature. But it didnt work out. Now i’ve figured it out. Need to re-apply collision object and fix subsurf mod!
Thanks for answering anyway