Jute cloth was acetylated with a limited amount of liquid acetic anhydride at 120°C. Weight gains of up to 20% were obtained. At a weight gain of 11%, achieved after a reaction time of 2 h, resistance to fungal attack was greatly improved. The cloth was also even in color, and the reduction in strength was minor. Tests on equilibrium moisture content and water uptake showed that the acetylated jute was much more hydrophobic than the unmodified material. It also shrank less when leached in water. Hence, dimensional stabilization was obtained.