Cotton fabric was treated with montmorillonite (MMT) so as to evaluate its effectiveness on improving its wrinkle resistance. The MMT in emulsion form was applied to cotton fabric by padding and finally the wrinkle resistance of the MMT-treated cotton fabric was improved. Furthermore, instrumental methods were used for studying the presence of MMT particles on the cotton fabric surface. It was noted that nano-scale MMT particles adhered on the fiber surface and the particle size played an important role in influencing the wrinkle resistance of the cotton fabric. The experimental results are discussed thoroughly in this paper.