Cotton is the most popular fabric for towels, with linen a distant second. Towels vary in pile height, density of loops, suppleness of yarn, and other details that determine longevity and cost.

Terry Towel has a top warp in addition to the usual warp (lengthwise threads) and woof (widthwise threads), making it more absorbent. Conceivably, terry can be made from any fiber. Most terry towels are made of American Upland cotton; more expensive towels use Pima and Egyptian cottons, which are finer varieties.

Jacquard is a towel with the terry loops raised and lowered to create patterns, anything from floral designs to checks and cables.

Flat-woven towels are frequently made from subtly patterned cotton or linen fabric (unusual yarns such as chenilles and boucles are also used) and are a common choice for guest towels, they wear well but require frequent ironing.