The sulfated beta-cyclodextrin (sb-cd) was prepared from beta-cyclodextrin and the sb-cd was crosslinked with cotton fabric using ethylenediaminetetraacetic acid (EDTA) as crosslinker. After crosslinking, the synthesized ZnO nanoparticles were padded on this fabric surface. Then, the treated fabrics were dyed with neem extract. The synthesized polymer, crosslinked and nanoparticle-treated cotton fabrics were characterized using fourier transform infrared spectroscopy (FTIR), X-ray diffraction (XRD), particle sized analyzer, and transmission electron microscopy (TEM) studies. The antibacterial test was done against Staphylococcus aureus and Escherichia coli bacterium. The composite coated with neem dyed cotton fabric has exhibited 71% of dye uptake with 2-3 fastness grade and it has 99% of antibacterial efficiency for S. aureus and 97% for E. coli bacterium. (C) 2012 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 128: 108-114, 2013