Abstract: The main ways of textile industrial upgrading are discussed in the progress of new type industrialization.Applying the related theories on industrial upgrade and value chain,the five factors restricting the textile industrial upgrade are analyzed,including the remaining at the lower end in the value chain of textile industry,weakening in the traditional advantageous position,inadequate investment in R&D,the traditional production mode,and weak marketing force.Then,the paper suggests that in the new type industrialization,the textile industry should expand to the two ends of the value chain,i.e.,to the material development in the upstream and to the high profit zone of product design and market in the downstream.The textile industrial upgrading may be realized by exploiting the advantages of traditional competitive potential,promoting personnel quality,reforming manufacturing methods,motivating technical innovations and strengthening marketing force etc.Thus,the textile industry of China may embark on a path of new type industrialization and realize sustainable development.