<p>This study investigates the influence of various constructional parameters and weave structure on the differential shrinkage (DS) %, tensile strength, absorbency, drape, softness, smoothness and resilience properties of woven terry towels with the goal of optimizing these characteristics for better durability, aesthetic and functionality. This research explores how different variations in constructional parameters and weaves can affect performance of terry woven towels. The results demonstrate that weft density variation significantly influences both differential shrinkage (DS) % and other performance properties. It was concluded that increasing thread density of the towel resulted in lower absorbency, overall moisture management capacity (OMMC), drape, softness, and smoothness. However, the tensile strength, shrinkage, and resilience score increase with increasing thread density of the towel. The differential shrinkage % of the towel can be lowered using proper weave structure and reducing the difference of thread density of body and fancy portions in the towel. The findings also highlight that multi-response optimization can be used for optimization of multiple outcomes. Its implications are far-reaching, impacting efficiency, quality, and competitiveness across various industries. The ability to balance multiple objectives makes it a valuable tool for decision − makers aiming to achieve comprehensive and effective solutions. This research provides practical insights for selecting appropriate thread density and weave combination to achieve both aesthetic and functional comfort, offering valuable guidance for manufacturers aiming to produce woven terry towel on the loom with precise dimensional control and performance. The overall approach is a scientific solution to a complex industrial problem dealing with multiple complex and interrelated parameters especially in the production of high quality terry towels.</p>