Recently, with an increase of interest in hygiene of textile products, research related to finishing technology to impart various functionalities, such as antibacterial and deodorizing properties, has also required. Therefore, in this study, the improvement of comfort was examined by analyzing the change of moisture characteristics and antibacterial and deodorizing properties of underwear fabric by chitosan microcapsule(CH-M) finishing. The results revealed that moisture absorption time of the fabric shortened, diffusion rate increased, while absorption rate slightly increased because of microcapsule finishing. In addition, the one-way transfer capacity of the microcapsule finished fabric was 17.69, which improved moisture transfer to one side, while OMMC showed the values of 0.32 and 0.37 for untreated and finished fabrics, respectively, which slightly increased after finishing. In the case of untreated fabric, antibacterial activity was 89.0% against Staphylococcus aureus and 70.3% against Klebsiella pneumoniae; however, both strains showed 99.9% antibacterial activity by CH-M finishing. An excellent bacterial reduction rate was also observed. In the case of the CH-M finished fabric, there was a deodorization effect exceeding 99% up to 120 minutes, and it showed an excellent deodorization effect of more than 99% even after 10 repeated washings.