The paper deals with the new type of cellulose fibres belonging to the 3rd generation - the so-called lyocell fibres. The introduction is followed by the description of the manufacturing technology with special emphasis to the ecological aspect. The physical and chemical properties of lyocell fibres are described; the author focuses to their tendency to fibrilate and to the measures to be taken to reduce this phenomenon. Any negative and positive consequences of fibrillation are presented. The behaviour of lyocell fibres during spinning, weaving and knitting is described. The problems occuring during treatment, dyeing, printing, finishing and crosslinking are investigated in detail. After the overview of various technological finishing processes of woven and knitted fabrics and of the achieved surface effects, the paper concludes with the review of several application fields of lyocell fibres - classic and fashionable apparels, consumer goods, durables and technical textiles.