With foam finishing method, cotton fabrics were treated by chitosan antibacterial finishing reagents. In this case, the one side of treated fabrics obtained good antibacterial effect while the other side had the original style. Chitosan solution of low molecular weight mixed with foaming reagents, foam stabilizer and new waterborne polyurethane adhesives, to form a new stable foam coating reagent, of which the foam half-life was more than 30 min. In this paper, compounding ratio of coating reagents and parameters of coating process were both discussed, and cotton fabrics with coating treatment were comparatively tested on each performance. The experiment results showed that The best process is that Chitosan solution mixed with 10% AEO-10 in ratio of 2: 1, CMC 10g/L, HEC 0.5g/L, PTF 5g/L, Waterborne polyurethane adhesives 1g/L.The best curing temperature and curing time is 120 degrees C X 2min. cotton fabrics with chitosan by foam coating process had good antibacterial effect on staphylococcus aureus, colon bacillus, candida albicans. The antibacterial degree was over 90%, and it could retain 80 % after washing many times.