Nanoscience and Technology has become popular and touched almost every branch of science and technology. Textile engineering is also not exception. Various nanoparticles are being used in smart textiles and technical textile products. Medical textile is an important area and have much opportunities for innovation and discoveries. Therefore, nanomaterials are used in medical textiles to have exotic properties. Herein we have discussed several methods for the characterization of materials at nanoscale. The common spectroscopic techniques like UV-Visible spectroscopy and microscopic techniques like scanning electron microscopy and transmission electron microscope routinely used in material characterization are discussed in detail. In the last section of the article we discussed various applications of nanomaterials in modern medical textile. The nanomaterials are used in surgical gowns, sanitary napkins, UV protection appliances, antimicrobial coating, sutures etc. Some advanced nanomaterials can be used in disease diagnosis, flame retardants, efficient drug delivery systems etc.