Antimicrobial textiles with improved functionality have a wide range of applications, including health and hygiene products, particularly garments worn next to the skin, and a number of medical applications, including infection control and barrier materials. Furthermore, these textiles are used in household materials, air filters, food packaging, athletic wear, storage, ventilation, and water purification systems. Cotton-based materials are hygienic and are commonly used in non-implantable hygiene medical textile products such as lint, gauze, bandages, wound dressing, and sanitary napkins. In terms of absorbency, comfort, and durability, non-implantable cotton fabric materials outperform standard clothing materials. Several studies show that depending on the type of components present in the plant extract, several plant extracts can be effective against both Gram-positive and Gram-negative bacteria. As a result, research into eco-friendly antimicrobial agents and their application on various textile products is gaining worldwide attention. Plants such as neem, eucalyptus, aloe vera, and clove contain natural antimicrobial compounds. Extracts of neem, eucalyptus, aloe vera, and clove are used in textile finishing. These bioactive substances could be used to impart antimicrobial properties to textiles for the development of health care and hygiene products. This review focuses on research into various natural antimicrobial agents derived from plant extracts and their applications as textile finishing agents for healthcare and hygiene applications.