Fabric inspection has an importance to prevent the risk of delivering inferior quality product. Until recently, the process was still undertaken offline and manually by humans, which has many drawbacks. The continuous development in computer technology introduces the automated fabric inspection as an effective alternative. In our work, Fast Fourier Transform and Cross-correlation techniques, i.e. linear operations, are first implemented to examine the structure regularity features of the fabric image in the spatial domain. To improve the efficiency of the technique and overcome the problem of detection errors, further thresholding operation is implemented using a level selection filter. Through this filter, the technique is able to detect only the actual or real defects and highlight its exact dimensions. A software package such as Matlab or Scilab is used for this procedure. It is implemented firstly on a simulated plain fabric to determine the most important parameters during the process of defect detection and then to optimize each of them even considering noise. To verify the success of the technique, it is implemented on real plain fabric samples with different colors containing various defects. Several results of the proposed technique for the simulated and real plain fabric structures with the most common defects are presented. Finally, a vision-based fabric inspection prototype that could be accomplished on-loom to inspect the fabric under construction with 100% coverage is proposed.