Abstract: Automatic towel dispenser has a box-shaped housing provided with a washing chamber and a drying chamber for an endless towel to be guided therethrough, the towel having a cleaned partial length thereof available for respective use and being guidable over a locking device for limiting the clean partial length of the towel to be withdrawn and guided outside the housing between an outlet opening and an inlet opening formed in the housing, a first storage chamber located in the housing between the inlet opening and the washing chamber for variably piling up therein a plurality of used partial lengths of the towel, and a second storage chamber located in the housing between the drying chamber and the outlet opening for variably piling therein a plurality of cleaned partial lengths of the towel, and means being activatable, upon the emptying to a given extent of the cleaned partial lengths of the towel in the second storage chamber, for passing used partial lengths of the towel through the washing and drying chambe