Nanotechnology has proven its importance in almost all areas, and textile industry is not an expectation. Several applications of nanotechnology can be extended to attain the performance enhancement of textile manufacturing machines and processes. Using different methods like electro spraying and electro spinning, various materials have been used to increase additional functions in textiles. This treatment is applied to give textiles the desired handle, to make further processing easier and to improve the thermal and antistatic properties. In this manuscript, we have summarized the recent advances made in nanotechnology and the methods of fabricating functional fibers by electrospinning and melt spinning preparation. Applications of the nanotechnology in textile industries are also summarized in this paper with some novel ideas that can be utilized for the future research in this area.