Among various metal oxide nano particles, MgO NPs and ZnO nanoparticles (NPs) in particular are gaining increasing attention due to their multifunctional characteristics, low cost and compatibility with textile materials. Each type of nanoparticle excels over others in certain properties. As such, it is often crucial to carry out comparative studies of NPs to identify the one showing higher efficiency/output for particular applications of textile products. In the investigation reported in this paper, ZnO NPs and MgO NPs were synthesised via sol-gel technique and characterised. For comparative analysis, the synthesised NPs were evaluated for multiple properties using standard procedures before and after being applied on cotton fabrics by a dip-pad-dry-cure method. XRD and FTIR analyses confirmed the successful synthesis of ZnO and MgO NPs. Homogeneous formation of desired NPs and their dense and uniform deposition on the cotton fibre surface were observed using SEM. ZnO NPs and MgO NPs coatings on cotton were observed to significantly enhance self-cleaning/stain removal properties achieving Grade 5 and Grade 4 categories, respectively. In terms of ultraviolet (UV) protection, ZnO or MgO NP coated fabrics showed UPF values of greater than 50, i.e. excellent in blocking UV rays. MgO NPs exhibited 20% cleaning efficiency in treating reactive dye wastewater against ZnO NPs which were 4% efficient in the same treatment, so MgO was more suitable for such type of treatments at low cost. Both NPs were able to impart multifunctionality to cotton fabrics as per requirement of the end products. However, ZnO NPs were better for stain removal from the fabrics while MgO NPs were appropriate for UV blocking. It was therefore clear that multifunctional textile products could be developed by employing a single type of cost effective and efficient nano particles.