Source: Tafsir al-Ahlam al-Kabir (Ibn Sirin)
The towel in a dream is a servant. It indicates the removal of worry and comfort.
Source: Ta'tir al-Anam fi Ta'bir al-Manam (Al-Nabulsi)
The towel indicates a woman or a maidservant. Drying oneself with it indicates gaining benefit from a woman.
Source: Al-Isharat fi Ilm al-Ibarat (Ibn Shahin)
The towel is interpreted as comfort and relief. Whoever sees himself hold one will attain comfort.