Wordnet 3.0
NOUN (1)
1. 
 a rectangular piece of absorbent cloth (or paper) for drying or wiping; 
VERB (1)
1. 
 wipe with a towel; 
- Example: "towel your hair dry"
The Collaborative International Dictionary of English v.0.48:
Towel \Tow"el\, n. [OE. towaille, towail, F. touaille, LL.
   toacula, of Teutonic origin; cf. OHG. dwahila, swahilla, G.
   zwehle, fr. OHG. dwahan to wash; akin to D. dwaal a towel,
   AS. [thorn]we['a]n to wash, OS. thwahan, Icel. [thorn]v[=a],
   Sw. tv[*a], Dan. toe, Goth. [thorn]wahan. Cf. Doily.]
   A cloth used for wiping, especially one used for drying
   anything wet, as the person after a bath.
   [1913 Webster]
   Towel gourd (Bot.), the fruit of the cucurbitaceous plant
      Luffa Aegyptiaca; also, the plant itself. The fruit is
      very fibrous, and, when separated from its rind and seeds,
      is used as a sponge or towel. Called also Egyptian bath
      sponge, and dishcloth.
      [1913 Webster]
The Collaborative International Dictionary of English v.0.48:
Towel \Tow"el\, v. t.
   To beat with a stick. [Prov. Eng.]
   [1913 Webster]
WordNet (r) 3.0 (2006):
towel
    n 1: a rectangular piece of absorbent cloth (or paper) for
         drying or wiping
    v 1: wipe with a towel; "towel your hair dry"
Moby Thesaurus II by Grady Ward, 1.0:
34 Moby Thesaurus words for "towel":
   air-dry, anhydrate, bake, blot, brush, burn, cure, dehumidify,
   dehydrate, desiccate, drain, dry, evaporate, exsiccate, fire,
   insolate, kiln, mummify, parch, rub, scorch, sear, shrivel, smoke,
   soak up, sponge, sun, sun-dry, swab, torrefy, weazen, wipe, wither,
   wizen