Chitosan is a poly-β-(1-4)-D-glucosamine obtained from the deacetylation of chitin. Its chemical properties and biological properties provide a broad potential application in the textile industry. In the current review, versatile properties of chitosan related to textile finishing are presented and briefly discussed. The application of chitosan in the textile industry including dyeing, printing, and functional finishing is summarized. Meanwhile, the advantages, disadvantages, and improved application methods are discussed. It is hoped that the review will be a good resource for those interested in antimicrobials and biocidal textile materials, and will help stimulate further interest in this area.