A novel cyclic‐shaped multifunctional copolymer named poly[tetra(tetramethylcyclosiloxyl‐piperazin)‐phosphinic acid methyl ether] (PNCTSi) was successfully synthesized. Its flame‐retardant and hydrophobicity properties on cotton fabrics were investigated. The limited oxygen index (LOI) value of treated cotton fabrics with PNCTSi was up to 29.8%. By vertical burning test, it was found that the treated cotton fabrics have no after‐flame and no after‐glow. Apparently, more amounts of char were generated and hazardous volatiles distinctly reduce after combustion by thermogravimetric analysis. Besides, Treated cotton fabrics with PNCTSi can give a hydrophobic property, which reach a contact angle of 150°. The surface morphology of treated cotton fabric before and after combustion was analyzed by scanning electron microscopy, after burned, the surface morphology of cotton fiber exhibited more smooth and expanded feature. After washing the cotton fabric for 20 times, the LOI remains at above of 26.0%. © 2018 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2019, 136, 47280.