The chemical recycling of cotton towels via the Ioncell® technique is demonstrated. Cotton is the most common natural fiber. The season's value jumped 31% to 54.3 billion US$ in 2020/2021, and annually the average value in quota‐free periods accounts to 46.3 billion US$. Consequently, enormous amounts of cotton wastes are emerging. Especially, European countries are forced by the new legislation of the union to develop new recycling strategies. Due to uncountable cotton applications, various types of garments exist, which require different recycling strategies. The recycling of an additional cotton waste side stream of Lindström Oy white pre and dyed and white postconsumer cotton roll towels was pursued. The mechanical properties of the fibers and yarns have been evaluated. Thereby, the following elongations and tenacities of conditioned fibers produced at DR11 have been achieved: 10.4%/59.5 cN/tex for preconsumer and 10.6%/60.4 cN/tex for postconsumer white cotton, 10.4%/60.0 cN/tex for postconsumer blue cotton. The achieved elongations at break are close to values reported in literature (7%–14%), however, the tenacities exceed reported values (40–58 cN/tex). Highly oriented fibers of high quality have been produced and with regards to the mechanical properties, a technique to perform fiber‐to‐fiber upcycling is illustrated.