Abstract: A terry cloth article having a frosted appearance includes a plurality of naps the tips of which are bleached, and is produced by a process including the steps of impregnating granules of an absorbent material with a solution including a bleaching agent, and contacting a dyed terry cloth with the granules for a time sufficient to bleach at least a portion of the dye from the naps of the terry cloth. After residual bleaching agent remaining on the terry cloth is neutralized, the terry cloth is subsequently contacted with a solution including an effective amount of an anti-peeling agent for a time sufficient to substantially eliminate peeling. Optionally the terry cloth can subsequently be overdyed with a second dye of a different color than the color of the terry cloth.