Disclosed is a towel holding apparatus for providing a ready access to a towel by a user. The towel holding apparatus includes an attachment assembly. The attachment assembly includes a clasping member capable of being detachably attached to an item of the user. Further, the attachment assembly includes a first connector detachably attached to the clasping member, and a first set of magnets removably engaged with the first connector. The towel holding apparatus further includes a holding assembly. The holding assembly includes a second set of magnets removably coupled to the first set of magnets of the attachment assembly. Further, the holding assembly includes a second connector removably engaged with the second set of magnets, and a holding member detachably attached to the second connector. The holding member is capable of removably holding the towel.