Plasma, the fourth phase of matter, can confer significant attributes to various textile materials. Plasma-induced surface modification of textiles especially grabs the attention of researchers as it is a potential process to impart multi-functional properties to the substrates. One of the major advantages of using plasma technology is that several chemical and physical properties are altered in the outer layer of the substrate, keeping the bulk material intact. Among the thermal and non-thermal plasmas, the second type is appropriate for treating textiles despite some limitations in industrial-scale processing. Several functionalities such as antimicrobial, antistatic, hydrophilic, and hydrophobic properties can be endowed to textile substrates using plasma. Additionally, flame retardancy, UV protection, and vintage denim look can be achieved by plasma treatment. As plasma technology is a dry, non-polluting, energy-efficient process for treating materials, this can replace the traditional wet chemical processes in textile finishing.