Environmentally friendly finishing methods for imparting antimicrobial properties to various textiles are very desirable. The purpose of the present study is to investigate the synthesis, characterization, and application of various chitosan (Ch) derivatives containing Ag, Cu and Zn nanoparticles (NPS) on wool yarn. The Ch loaded with various NPs was studied by Scanning Electron Microscopy (SEM), Dynamic light scattering (DLS), Fourier Transform Infra-Red (FTIR) and Differential Scanning Calorimetry (DSC). Wool yarns were treated with Ch-NPs and the treated samples were analyzed by SEM. The weight gain results indicated the successful surface modification of wool fibers with Ch-NPs. The treated samples showed excellent antimicrobial activities (~ 100%) against Staphylococcus aureus (S. aureus) and Escherichia coli (E. coli). The treated samples had generally very high antimicrobial activities (> 80%) even after 10 washing cycles. The surface modification of wool fibers with Ch-NPs can be considered as an environmentally friendly method for antimicrobial finishing.