The most common and most likely answer to this crossword clue is the 7 letter word CHALLIS
C
H
A
L
L
I
S
More clues leading to the result CHALLIS
Buddy explains!

The straight part
We know that "fabric" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case fabric = challis.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does CHALLIS mean?
CHALLIS noun- A light, soft fabric of silk and worsted, having a printed design.