Fiber technology, crucial to human societies for millennia, encompasses cordage and textiles. The development of fiber crops and the production of fiber-based clothing are significant components of the Neolithic Revolution. Despite China being an independent center for agriculture, the role of fiber technology in this context remains largely unexplored. In this project, we employed a comprehensive approach that combines microfossil analysis and use-wear examinations to study tools from the Peiligang site in North China. This site uniquely spans the Upper Paleolithic and early Neolithic periods, offering an ideal setting for investigating the evolution of fiber production. Our results reveal that some Paleolithic blades and scrapers were associated with fiber production, which coincided with ostrich eggshell beads and hematite during the cold and dry Last Glacial Maximum period. Responding to climatic fluctuations, fiber production played a significant role in subsistence and ritual activities. In the early Neolithic, advanced fiber production is evident. Two adjacent burials yield tools and microfossil remains representing a toolkit for fiber and possible textile production, including harvesting, retting, pounding, scraping, and sewing. Fibers recovered from human bones provide potential evidence of textile production and use. Dyeing with blue, black, and red colorants was common for textiles, cordages, and strings. These grave goods suggest the involvement of the deceased in craft production with bast fibers, possibly embodying the earliest specialization in fiber craft 8000 years ago in Neolithic China.