Polyester fabric was treated with polyvinyl alcohol in alkaline medium. The moisture regain, water retention and wettability of the PVA treated polyester fabric were tested. The PVA treated PET fabric was dyed with disperse dye. The presence of PVA in the treated PET fabric was assessed by spot test. The treated fabric was also characterized by scanning electron microscope, FTIR and differential scanning calorimetry. The PVA treated polyester fabric showed improved hydrophilic character over intact and sodium hydroxide treated PET fabrics.