It is well known that cotton fabrics provide desirable properties such as absorbency, breathability and softness. But, their applications often are limited due to their inferior strength, durability, crease resistance, dirt resistance, and flame resistance. On the other hand, fabrics made with synthetic fibers generally are very strong, crease resistant and dirt resistant, but they lack the comfort properties of cotton fabrics. With recent advances in nanotechnology, it is possible to develop next-generation cotton-based fabrics that can complement the advantages of cotton and man-made fibers. Such advanced fabrics can be produced either by blending cotton with special man-made nano-fibers or by treating the yarns or fabrics with various design/material modifications at nano-scale. In this study, we have attempted to summarize the recent advances made in nano-technology and the latter's applications in cotton textiles,along with some ideas about the future research direction in this area.