In ancient times, textiles were only used for covering the human body. Nowadays, people are looking for functional textiles to provide additional functional properties. In the present work, an attempt was made to develop chitosan and boric acid-based microcapsules loaded with frankincense oil. Application of these microcapsules was done on cotton using a pad-dry method. The release rate, encapsulation efficiency and microencapsulation yield of microcapsules, and functional properties of finished fabric were studied. The prepared microcapsules were also characterised by different techniques like SEM, FTIR, TGA, and EDX. The finished fabric exhibited mosquito repellency (100 %), antioxidant activity (>66 %), antibacterial activity against E. coli (88.69 %) and S. aureus (94.5 %), and LOI of 24 with a pleasant aroma.