Most geotextiles consist of polymers of polyolefin, polyester or polyamide family, which involve environmental problems related to soil pollution. Geotextiles can be used for at least one of the following functions: Separation, reinforcement, filtration, drainage, stabilization, barrier, and erosion protection. Due to the characteristics of high strength, low cost, and easy to use, geotextiles are widely used in geotechnical engineering such as soft foundation reinforcement, slope protection, and drainage system. This paper reviews composition and function of geotextiles in geotechnical engineering. In addition, based on literatures including the most recent data, the discussion turns to recent development of geotextiles, with emphasis on green geotextiles, intelligent geotextiles, and high-performance geotextiles. The present situation of these new geotextiles and their application in geotechnical engineering are reviewed.