The antimicrobial finishing of textiles is intended to provide protection of textiles against microbial corrosion, prevention of malodor or prophylaxis and therapy of infections, respectively. This article evaluates the applicability of N-Phthalimido-α-hydroxyaceticacid as antibacterial in textile finishing. It was synthesized by the reaction between Phthalimide and Glyoxalic acid in THF medium. The synthesized compound was identified by spectral data and covalently attached to the cotton fabric by a two-stage process of chemical modification. The existence of chemical linkage was confirmed by SEM analysis and F.T.I.R. The treated fabric was subjected to multiple washings to determine durability. The treated fabric was then analysed for antibacterial properties.