Grafting or deposition is a powerful tool to modify the cellulose/textile surfaces permanently with precisely controlled structure in nanometer to micrometre scale, which leads to multifunctional applications. The properties that can be imparted through functionalization include superhydrophobicity, superoleopholicity, shape memory effect, high conductivity, drug storage/delivery, flame retardant, heat storage/release, and UV protection. Through this functionalization new applications for textile can be achieved such as waterproof textiles, textile actuators, fire resistive textiles, UV-protective materials, Band-Aids, transdermal batches, medical textiles, supercapacitor electrodes, separator of oil-water mixture, wearable textile electronics, conductive textiles, self-protection cloths. This chapter summarises recent publications about modifying the cellulose surfaces with biopolymers along with nanoparticles and their composites used for superhydrophobicity, oil-water separation, conducting fabrics and drug delivery devices leading to smart bandages. The main objective is to clarify the true significance of functionalization for each application. Thus, another important purpose of this chapter is to establish general guidelines for functionalization and propose future direction for cheaper devices that can elevate the textile industries.