With the aim to apply graphene in the functional finishing of textiles, the comprehensive review on the diverse functionalities of textiles and the corresponding mechanism was carried out, such functionalities as electrical conductivity, UV protection, hydrophobicity, anti-bacteria, and flame retardancy. The approaches used to achieve permanent finishing of textiles with graphene or its derivatives were reviewed in details, such as exhaustion, dip-pad-dry, with the help of adhesives, vacuum filtration deposition, sol-gel, and layer-by-layer assembly. To improve durability of the obtained functional fabrics, the precise regulation of graphene or its derivatives, pretreatment of fabric and the rational use of the characteristics of fibers were effective paths. Finally, the prospect towards industrialization of the textiles functional finishing with graphene was forecasted and several related suggestion was proposed.