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This chapter reviews relevant findings regarding the activities and contributions of chitosan in different textile processing following the varieties of process, mechanism, and applications. Chitosan is a better candidate in both aspects of biodegradability and efficiency instead of synthetic polymers. The technical and scientific discussions behind the role of chitosan in all the processes and treatments have been explored in the chapter. Over the last few years, enormous efforts and challenges are being practiced in research and industry to design and development of eco-friendly and sustainable technologies. Therefore, the chapter emphasizes on chitosan-based formulations of fibers, fabrics, coatings, and functional textiles.