<p>Crease finishing has revolutionized cotton textiles by enhancing wrinkle resistance, durability, and aesthetic appeal, addressing the natural propensity of cotton to crease. This review comprehensively traces the evolution of crease-finishing techniques, from early starch-based methods to modern chemical, nano-based, and enzymatic treatments. Historically, formaldehyde-based resins like urea–formaldehyde and DMDHEU dominated, but health and environmental concerns have driven the adoption of non-formaldehyde alternatives such as polycarboxylic acids (e.g., BTCA) and bio-based agents like citric acid and chitosan. Current advancements include nanotechnology, plasma treatments, and enzymatic processes, which improve crease recovery angles (CRA, 250–300°) while minimizing environmental impact. Challenges persist, including wastewater generation, reduced fabric strength, and consumer demand for sustainable yet high-performance textiles. Future trends focus on green chemistry, smart textiles with self-ironing capabilities, and AI-driven finishing for precision and efficiency. By synthesizing past developments, present innovations, and emerging possibilities, this review provides a roadmap for researchers, manufacturers, and consumers navigating the dynamic landscape of textile finishing, emphasizing sustainability and performance.</p> Graphical Abstract <p></p> <p>Chalenges in Crease Finishing of Cotton Textiles</p>