This exploratory study has provided an insight into implementation of TQM in Pakistani textile manufacturing industry and factors that were considered to be critical to adoption of TQM. The cross sectional results show that TQM is largely implemented in manufacturing/operating function and little in other functional areas. TQM is a philosophy mainly adopted by large organizations. Whereas, SME businesses are still lagging behind larger one’s when it comes to introducing and adopting new managerial philosophy and advanced technology. Many SMEs have stopped at quality system certification, rather than pursing further continuous improvement efforts by adopting TQM. SMEs must understand the need to go beyond the quality system stage and work towards TQM for quality.