The surface morphology of the $CO_2$ laser treated grey cotton fabrics was studied which showed a characteristics sponge-like structure on cotton fibres after treating with $CO_2$ laser irradiation. The laser treatment parameters ranging from 100 to 150 pixel time and 40 to 70 dot per inch (dpi) were irradiated on the grey cotton fabrics directly and the degree of physical modifications, such as surface morphology, wettability and fabric strength, were changed accordingly with various laser treatment parameters. The surface morphology, wettability and tensile strength of cotton fibre treating with laser were evaluated using different instruments, such as Scanning Electron Microscope (SEM), contact angle meter and tensile strength machine. In spite of creating a sponge-like structure on fibre surface after treating with laser, the wettability of the samples was highly improved but the tensile strength was decreased.