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Starch is an important ingredient for food and other industries. Modified starch has better properties than natural starch. Phosphorylation is one of the effective techniques to improve the functional properties of starch and to modify its behavior in terms of gelatinization, pasting, and retrogradation. Phosphorus is the effective component of phosphate, and it is one kind of important nutritional ingredient in functional foods. This article summarizes the modification of starch by phosphorus and the application of phosphorylated starch in the food,textile, and paper manufacturing industries. The starch phosphate that is produced by the reaction between phosphate and starch may be used as emulsifier, thickener, or stabilizer in food processing. Furthermore, as a good sedimentation agent, the starch phosphate can be used for sedimentation and reclamation of wastes of spent water in food processing manufacturing of meat, fishes, fruits, vegetables, brewage, and so on. On the other hand, because the starch phosphate can substitute partly and reduce the amount of polyvinyl alcohol (PVA), and thus make easier desizing, it is widely used for sizing, thickening, printing, and fixing in the textile industry. In addition, in the paper manufacturing industry, the starch phosphate can be used for paper sizing or paper cardboard adhesive coating.