Herbal products have been widely used due to good antimicrobial, fragrance and medical properties. Essential oils and fragrances can be applied on the textile substrates as micro/nanocapsules to prolong lifetime by controlling the release rate. The present review tries to give a general overview on the application of micro/nanoencapsulated essential oils on the textile substrates to achieve aromatherapy textiles. These are divided into four diverse categories as the following: antimicrobial, perfumed, mosquito-repellent and medical textiles. The reports in this field revealed that the encapsulation technique plays an important role in the finishing of plant extracts on the textile substrates. It is also anticipated that aromatherapy textiles have to be developed in the new fields such as multifunctional textiles having wound-healing, antimicrobial and fragrant properties.