Technical Abstract: This review article demonstrates the scope and applications of nanotechnology towards modification and development of advanced textile fibers, yarns and fabrics and their processing techniques. Basically, it summarizes the recent advances made in nanotechnology and its applications to cotton textiles with some novel ideas and limitations of deploying nanotechnologies. Specifically, the nanotechnology, mainly because of the nano-size particles involved and, consequently, “an order of magnitude greater-than-normal surface areas of the particles,” can be efficiently utilized to improve fiber/fabric characteristics with less-than-normal add-on of certain function-specific textile finishing substances.