Cotton fabric treated by Pyrovatex CP New (PCN) and Knittex FFRC (K-FFRC) using the Pad-dry-cure method showed an excellent fire-retardant effect. However, it needed to be cured at high temperatures for a long time leading to a high loss of mechanical strength. In this study, atmospheric-pressure dielectric barrier discharge (APDBD) plasma was applied to the cotton fabric, which then was treated by flame retardants (FRs) using the pad–dry-cure method. The purpose was to have a flame-retardant cotton fabric (limiting oxygen index (LOI) ≥ 25) and a mechanical loss of the treated fabric due to the curing step as low as possible. To achieve this goal, 10 experiments were performed. The vertical flammability characteristics, LOI value and tensile strength of the treated fabrics were measured. A response model between the LOI values of the treated fabric and two studied variables (temperature and time of the curing step) was found. It was predicted that the optimal temperature and time-to-cure to achieve LOI of 25 was at 160 °C for 90 s, while the flame-retardant treatment process without plasma pretreatment, was at 180 °C and 114 s. Although the curing temperature and the time have decreased significantly, the loss of mechanical strength of the treated fabric is still high. The tensile strength and scanning electron microscopy (SEM) images of the fabric after plasma activation show that the plasma treatment itself also damages the mechanical strength of the fabric. X-ray photoelectron spectroscopy (XPS) spectra of the fabric after plasma activation and energy-dispersive spectroscopy (EDS) analysis of the flame retardant-treated (FRT) fabric clarified the role of plasma activation in this study.