The present invention relates to a body and hair towel comprising a microfiber interior layer and a silk exterior layer. The novel towel is comprised of a plurality of double layered capsules, wherein each capsule has an interior layer of microfiber material and an exterior layer of silk material. The exterior silk layer on the capsules provides an extremely smooth texture to the towel, thereby making the towel comfortable and convenient to use by people having dry skin, skin conditions or the like, and may also be comfortably used on hair without affecting the health of hair and skin of the users.