A thermoregulating smart textile based on phase change material (PCM) polyethylene glycol (PEG) was prepared by chemically grafting carboxyl-terminated PEG onto cotton. Further deposits of graphene oxide (GO) nanosheets were made on the PEG grafted cotton (PEG-g-Cotton) to improve the thermal conductivity of the fabric and to block harmful UV radiation. The GO-PEG-g-Cotton was characterized by Attenuated total reflectance-Fourier transform infrared spectroscopy (ATR-FTIR), Raman spectroscopy, X-ray diffraction (XRD), x-ray photoelectron spectroscopy (XPS), and field emission-scanning electron microscopy (FE-SEM). With an enthalpy of 37 and 36 J/g, respectively, the DSC data revealed that the functionalized cotton's melting and crystallization maxima occurred at 58 °C and 40 °C, respectively. The thermogravimetric analysis (TGA) presented that GO-PEG-g-Cotton was thermally more stable in comparison to pure cotton. The thermal conductivity of PEG-g-Cotton increased to 0.52 W/m K after GO deposition, while pure cotton conductivity was measured as 0.045 W/m K. The improvement in the UV protection factor (UPF) of GO-PEG-g-Cotton was observed indicating excellent UV blocking. This temperature-regulating smart cotton offers a high thermal energy storage capability, better thermal conductivity, thermal stability, and excellent UV protection.