The study aimed to identify the reasons for which the performance of textile industry in Egypt has declined.in addition ,the study aimed to analyze the impact of strategic alliances on reducing this decline. The research population consisted of managers and employees of textile companies affiliated to the investors&Exporters Association in El –Mahalalla AL Kurba .The researcher used the consensus method for the category of managers which consisted of 42 individuals.for the category of employees which consisted of 5475 individuals ,the researcher used a satisfied random sample consisting of 359 individuals . One of the most important findings of study is that textile companies in Egypt ,whether private or public sector companies,face several challenges including: The lack of financing which resulted in reducing the level of technology used in the industry,the high prices of cotton and production requirements in Egypt which resulted in raising the cost of local production and making it unable to compete against imported products,the lack of productive and experienced workers,the bad conditions of equipment and machinery ,the inability to run production lines at their full capacity and shutting down production lines in some companies,the increase in the rate of defective units and rejected units,as well as the prevalence of the phenomenon of smuggled textiles from broad and entering them illegally into the country. In the light of challenges facing textile industry in Egypt,the researcher found through the field examination on companies under study that there is a statistically significant relationship between strategic alliances and reducing the decline of textile industry .