This study presents the encapsulation of spearmint oil (SMO) in chitosan microstructures prepared through the emulsion formation method. The SMO although is medicinally significant yet finds limited applications in medical and functional textiles because of its less stability and high volatility under ambient conditions. Nevertheless, its encapsulation in chitosan may enhance its stability and applicability for the said purpose. The SMO encapsulating chitosan microstructures were characterized using different analytical techniques and applied on cotton fabric through a green crosslinking of citric acid. The treated fabric revealed successful adhesion of microcapsules onto its surface confirmed via SEM and FTIR analyses. There observed a slight decrease in tensile strength of treated fabric; that, however, improved crease recovery behavior, and good antibacterial activity in response to broad-spectrum bacterial strains by reducing their 99% population; whereas, the stiffness of such fabric exhibited somehow increasing trend. Hence value-added multifunctional textiles produced, herein, may provide both surface and antibacterial activity for potential medical and healthcare applications without compromising their comfort properties.