Technical Abstract: Nanotechnology is a rapidly growing field which has drawn a lot of attention in recent years. Nanotechnology has been hailed as the next great technology, and just as widely criticized as the next great threat. Textiles have not been ignored in the pursuit of developing applications for nanotechnology. The textile industry has seen developments of nanoparticulate coatings, nanofibers, and nanocomposites, as well as other innovations in nanotechnology. The majority of work on textile nanotechnology has been in coatings and finishing treatments. Nanocomposites are an exciting venue for nanotechnology in textiles. Unlike a coating or finish, nanocomposites do not require treatment after formation of the textile product, not can it be worn or washed away. Although the area of nanocomposites has been greatly explored in the last decade, little work was done on cellulose nanocomposites, in particular cotton nanocomposites. For the last several years the authors have presented reports on the status of their cotton nanocomposite research. The authors have successfully developed and patented a cellulose/clay nanocomposite for improved thermal stability. The authors have demonstrated improved thermal stability in cellulose/clay nanocomposites made of a variety of sources of cellulose, such as cotton, kenaf, flax, grass, and gin waste. These nanocomposites show improved thermal stability with the addition of as little as 3% organic clay nanoparticles. The authors have demonstrated that the cellulose/clay nanocomposites can be manufactured into a variety of forms, such as fiber, nonwovens, and films.