This paper presents a new flexible multibody system (MBS) approach for modeling textile systems including roll-drafting sets used in chemical textile machinery. The proposed approach can be used in the analysis of textile materials such as lubricated polyester filament bundles (PFBs), which have uncommon material properties best described by specialized continuum mechanics constitutive models. In this investigation, the absolute nodal coordinate formulation (ANCF) is used to model PFB as a hyperelastic transversely isotropic material. The PFB strain energy density function is decomposed into a fully isotropic component and an orthotropic, transversely isotropic component expressed in terms of five invariants of the right Cauchy–Green deformation tensor. Using this energy decomposition, the second Piola–Kirchhoff stress and the elasticity tensors can also be split into isotropic and transversely isotropic parts. The constitutive equations are used to define the generalized material forces associated with the coordinates of three-dimensional fully parameterized ANCF finite elements (FEs). The proposed approach allows for modeling the dynamic interaction between the rollers and PFB and allows for using spline functions to describe the PFB forward velocity. The paper demonstrates that the textile material constitutive equations and the MBS algorithms can be used effectively to obtain numerical solutions that define the state of strain of the textile material and the relative slip between the rollers and PFB.