Pakistan textile industry contributes more than 60% of the country's total exports but the country is at 8th position of the largest exporting countries of Asia and the reason of such low export is poor quality in textile products. The study was conducted to find out the effect of TQM implementation on business performance in textile industry of Pakistan. TQM is a management method used to enhance quality of textile products and productivity of the textile firms. The study may be helpful in the fully implementation of TQM in order to improve quality of the textile products and increase in export value. The research is based on primary and secondary data. Primary data is collected through questionnaires from employees/employers of the firm. While secondary data is collected from six composite textile firms. For primary 11 factors of TQM implementation and 4 factors of business performance were selected and responses were measured on 5 point likerts scale. The results indicate that TQM has positive effect on overall business performance and leadership plays critical role in TQM implementation. It is not essential for all the factors to be presented to guarantee the success of TQM programme of overall business performance. Leadership, product quality, customer satisfaction and strategic business performance are found to be the most effective factors of TQM implementation in business performance.