Collocations for towel - noun

clean, fresh
damp, wet
dry
hot, warm
rolled (AmE), rolled-up
fluffy, soft, thick
cotton, paper, terry (esp. AmE), terry-cloth (AmE)
bath, bathroom, beach, dish (usually dishtowel), hand, kitchen (esp. BrE), tea (BrE)
sanitary (BrE) (sanitary napkin in AmE)

drape, wrap
He had a towel draped across his shoulders.

hang
Several towels hung over the side of the bath.

rack (AmE), rail (BrE)
a heated towel rail/rack

dispenser
a paper towel dispenser