To address the current development requirements for multifunctional cotton fabrics, a phytic acid-induced flame-retardant hydrophobic coating containing nitrogen (N), phosphorus (P), and silicon (Si) was grafted on the surface of cotton fabrics using a facile step-by-step immersion method. The limiting oxygen index value improved to 31.2%, decreasing to 26.7% after 50 laundering cycles, while the fabric remained self-extinguishing effect in the vertical flammability test and showed a water contact angle of 126.1°. Cone calorimetry test showed that the modified fabric could not be ignited at the irradiation heat flux of 35kW/m2. When the irradiation heat flux was raised to 50kW/m2, there was a significant decline in the peak heat release rate of the modified cotton fabric, which decreased by 43.2% to a remarkably low value of 114.0kW/m2, indicating excellent flame-retardant properties. The analysis of the flame-retardant mechanism uncovered that the modified coating exhibited a significant dual flame-retardant mechanism involving both the gaseous phase and the condensed phase. Additionally, the oil-water separation tests revealed that the separation efficiency of the modified cotton fabrics was as high as 97.1% and remained around 96% after 10cycles, which made them reusable for the clean-up of hazardous chemicals.