Current global challenges of the 21st century promote STEAM (science, technology, engineering, arts and mathematics) education and digitalization as a means for humans to be the central actors in the construction of a sustainable society that favors a sense of worth and global wellbeing. In this scenario, new educational technology tools and immersive learning affordances (possibilities), offer unprecedented potential for the design of smart and dynamic learning systems and contexts that can enhance learning processes across varied audiences and educational settings. However, current STEAM education practice lacks attention to equipping all citizens with the necessary skills to use digital technologies in an ethical, critical and creative way. This gap calls for attention in design processes, principles and practices that are attentive to ethical considerations and values-based approaches. On the other hand, in its formulation STEAM as an educational approach is framed in four fundamental pillars: creativity, inclusion, citizenship and emerging technologies, which also put attention on the inclusion of disadvantaged and underrepresented social groups during STEAM education design. Following an apparent need to explore ethical and inclusive design in STEAM education, and inspired in the 4E cognition framework, ethical enactivism and embodied and ecosomaesthetics experience design, here we propose a theoretical framework grounded on systems thinking for the design of smart and dynamic STEAM learning systems and settings. The framework is aimed at STEAM educational psychologists, educational technologists, learning designers and educational practitioners who wish to address the global challenges of 21st century education by means of creative, innovative and inclusive education design.