This work is a small effort in the production of an eco-friendly natural based antibacterial and anti-inflammatory finished cotton fabrics using the ethanolic extracts (Ex) of the sea grass Halophila stipulacea (H. stipulacea) and marine macroalgae [Colbomenia sinuosa (C. sinuosa) and Ulva fasciata (U. fasciata)]. The extracts were phytochemically screened for their constituents. These extracts were used to finish cotton fabrics by a variety of methods. Concerning this, fabrics (F) were singly treated with ethanolic extracts (ExF) of these marine organisms by the dip technique and the extract encapsulated with sodium alginate or meypro gum. The encapsulated fabric (EnF) was further finished individually with citric acid (CA), (EnF/CA) and mono-tert-butyl ether of glycerol (MTBG) binder (EnF/Bin) by the pad-dry-cure technique. The fabrics so-finished were evaluated for their antibacterial and anti-inflammatory activities without washing (control) and after different washing cycles. The results obtained showed that, both EnF/CA and EnF/Bin inhibit the bacterial growth by about 90% after 10 washing cycles for both Escherichia coli (E. coli) and Staphylococcus aureus (S. aureus). The anti-inflammatory activity, the potency% reached to 88.3% for the fabric encapsulated with microcapsules of sodium alginate/H. stipulacea sea grass and the EnF/CA.