Abstract: In order to impart multifunctions to cotton fabric, chitosan grafted with β-cyclodextrin was prepared, which was applied to the durable press finishing of cotton fabric with citric acid as crosslinker and sodiun hypophosphite as catalyst. The results showed that the effect of treatment of chitosan grafted with β-cyclodextrin is superior to that of chitosan and chitosan blended with β-cyclodextrin. The optimum process was determined by orthogonal experimens as follows: citric acid 80g/L, sodiun hypophosphite 50g/L, chitosan grafted with β-cyclodextrin 3g/L, cured at 180℃ for 3 min. The wrinkle recovery angle of the finished fabric increased by 105°, the store perfume properties increased to over 2.5 times. The finished fabric had the inhibition to Staphylococcus aureus and Escherichia coli and its breaking strength and whiteness were also improved.