Vetiveria zizanioides is popularly known as Khas Khas or Khus grass widely grown in Karnataka and other stateshas been used as one of the important bioresources with variegated functional properties viz., medicinal value, aromatic andantimicrobial properties. Vetiver root powder was extracted by 80 per cent of ethanol and microcapsules were prepared byinterfacial polymerization technique using diluted vetiver oil, dicyclohexyl methane 4,4 dilsocyanate, cetyltrimethylebromide and ethylene diamine. The scoured and bleached organic cotton fabric was treated with Vetiver root extract andVetiver oil microcapsules through exhaust and pad dry cure method. The treated samples were assessed for mechanicalproperties viz., cloth count, cloth thickness, cloth weight, cloth crease recovery and cloth stiffness. The results revealedthat, the cloth density of treated samples were found to be decreased and reduction was statistically non significant. Thetreated samples possessed greater crease recovery angle and lesser bending length resulting into more softer, pliable andresistant to crease due to presence of diethyl pathalate compound in the vetiver root and oil. The vetiver microcapsulestreated sample by pad dry cure method found to be more thicker and heavier than the exhaust method of application.Irrespective of method of application and treatments, the vetiver oil microencapsulated organic cotton fabric by pad drycure method possessed excellent mechanical properties than other treated fabric samples. Vetiver root powder and oil ismost suitable bio source for textile finishing as a crease resistant agent and to improve the mechanical properties of thefabrics due to presence of major compound like diethyl pathalate and cyclohexane