Here, a cotton wound dressing was prepared with control release of Ketoconazole (KZ) to kill skin fungus. KZ alone and KZ/β-cyclodextrin (β-CD) were loaded on cotton through diverse methods. The drug release, antimicrobial activities against C. albicans, A. niger, E. coli and S. aureus and also cell cytotoxicity were studied. H NMR ensured the formation of KZ/β-CD complex, SEM images showed surface morphology and confirmed stability. KZ interestingly reacted with the cotton in the batch treatment possibly due to the two active chlorine groups, high temperature and relatively long treatment time. Good antifungal activities and slow release reported for the KZ treated fabric, however KZ/β-CD loaded more on the fabric with regular and slow release for longer time. The batch performed better than continuous method indicated good antifungal activities with more KZ loading and slower release. Also a cross-linking agent along with β-CD/KZ prolonged the release time with excellent washing stability.