<p>The textile industry has been undergoing rapid technological advancements, with increased emphasis on sustainability, functionalization, and performance. Layer-by-layer (LBL) self-assembly has emerged as a burgeoning technology in durable textile finishing, enabling the deposition of thin, conformal, and uniformed structure patterns on various substrates including textiles. This review aims to provide a comprehensive analysis of LBL self-assembled technique for diverse range of applications in the realm of textile finishing. The basic principles of LBL self-assembly, including mechanisms of dip coating and factors, influence the growth and stability of multi-layers in durable textile finishing. The LBL coating is achieved by alternate dipping in polyelectrolytes, polymer nanoparticles, and biomolecules. The review gives an insight into multi-functional durable textile finishing via LBL thin-film coating includes, anti-microbial, flame-retardant, anti-UV, conductive and hydrophobic for natural and synthetic textile substrates. The ease and flexibility of LBL coating without complex instruments are a benchmark to achieve durable multi-functional finishing for textiles with improved mechanical and thermal stability. Thus, LBL self-assembled dip coating is a robust, cost-effective, and eco-friendly approach without utilizing hazardous toxic chemicals as those employed in conventional wet finishing process in textile industry.</p> Graphical abstract <p></p>