Abstract. This paper uses the EG index, which adjust accordingly to the textile industry data of Yangtze River Delta region of China to measure the level of textile industry agglomeration in Yangtze River Delta region of China from 2003 to 2014. The results show that the agglomeration level of textile industry in Yangtze River Delta region of China has experienced four stages: rapid growth, steady development, rapid decline and slow recovery. Through the analysis of the causes of the changes of agglomeration level namely EG index in each stage, this paper has found that the textile industry in Yangtze River Delta has several problems in industrial structure and enterprise development. Therefore, the corresponding recommendations were presented to promote the healthy development of the textile industry in Yangtze River Delta region.