A novel method for locating the pills in woven fabric based on Gabor filter is proposed in this paper. The process of capturing the fabric image is first introduced and the hardware and software of the system is given simultaneously. Gabor filter is then carried out in the pilled fabric image to remove the fabric texture and enhance the pill information. In the enhanced fabric image, threshold method is used to segment and locate the fabric pills. The location of fabric pills lays the foundation for constructing the whole system of evaluating the fabric pilling grade.