The creasing characteristic of fabrics is affected by many factors like yarn twist, fabric density, fabric constructions, fabric thickness apart from the fiber type. In the first part of this study, the effect of yarn fineness, yam twist, fabric tightness and weave construction factors on crease recovery was studied. In the second part of the study, in order to improve the creasing recovery of the fabrics, shape memory alloy (SMA) wires were used and the effect of shape memory alloy (SMA) wire on the crease recovery of cotton fabrics produced with different types of weave constructions were determined. Due to the high cost of SMA wire and the weaving operation adversity the two experimental plans were designed according to Taguchi design of experiment (TDOE). From the analysis of the first part, it was found that the yam linear density had the greatest effect on fabric crease recovery compare to others. Twist coefficient was the second, weft density was third and the weave construction had the least significant effect on the crease recovery. The fabrics produced with coarser and low twisted yarns with high tightness and longer floats in the weave construction have higher crease recovery property. In the second part of the study, the application of the SMA wire significantly increased the crease recovery angle of the fabrics. The thickness of the SMA wire is very important and the effect depends on the wire thickness. The increase of the SMA wire thickness increases the crease recovery significantly. However it must be appropriate with the yarn and fabric properties. The distance between the SMA wire distances was expected to increase the crease recovery however the effect was found not significant. The fabrics produced with coarser yarns with longer floats in the weave construction have higher crease recovery property. However, statistically the effects of these parameters were found not significant due to the dominant effect of the wire thickness.