The invention provides a composition for improving the anti-pilling performance of all-cotton fabric and an anti-pilling finishing technology. The composition is prepared from modified polyether emulsion, amino fatty acid emulsion, modified polysiloxane emulsion, acrylic-acid-modified polyurethane polymer emulsion, acetic acid and water. The finishing technology comprises the steps that a grey fabric is sequentially processed through singeing, enzyme rolling and cold heaping, boiling-out, bleaching, mercerizing, whitening, printing, ageing, washing, anti-pilling finishing, press polishing and preshrinking. The composition not only can enable the fabric to have the good skin-friendly performance and soft hand feeling, but also has the good anti-pilling performance.