Textile is a necessary commodity and is of paramount importance in a variety of areas. The properties of textiles can be further enhanced and the horizon of their applications can be broadened by the incorporation of nanoparticles using nanotechnology. Nanoproducts ranging from nanofibers, nanocomposite fibers, and intelligent polymeric nanocoatings are frequently incorporated in conventional textiles to provide improved performance and new functionality. Nanocoatings offer numerous specific properties like antimicrobial, wrinkle resistance, and protection against UV radiations. These properties lead to a variety of textile applications, including medicinal textiles and sportswear. In the COVID-19 pandemic situation, nanotechnology has paved the way for need-based customization, such as antiviral masks, PPE kits, etc. This paper provides an overview of the nanomaterials suitable for textile industry, enhancement in the properties of fabrics due to incorporation of nanomaterials, advantages, disadvantages, and a few applications.