Host-guest complex of β-cyclodextrin-cochitosan and lavender was employed for the combined aroma cum anti-bacterial finishing of cotton textiles. The modified host viz. β-cyclodextrin-co-chitosan was synthesized with the use of β-cyclodextrin citrate as the intermediate for the achievement of the satisfactory yield of the host. FTIR analysis was carried out for the characterization of β-cyclodextrin-co-chitosan and also the surface modification of the functionalized cotton with the modified host. 1HNMR spectra of the inclusion complex of β-cyclodextrin-co-chitosan and Lavender had confirmed the formation of a strong complexation between the two compounds. The functional as well as physical properties as aroma retention, anti-bacterial assessment, tensile strength, crease recovery, bending length and air permeability were investigated both for the host-guest complexed cotton and lavender alone treated cotton. The aroma retention and a strong inhibition zone was found more pronounced in the functionalized cotton instead of the oil alone treated cotton, which can be a promising and potential cadre of application of multi faceted textiles.