Phi Psi fraternity was organized for the purpose of advancing the social welfare of, and promoting friendly feelings between those students of Textile Schools and other approved educational institutions with textile departments, who are members. Phi Psi shall be classified as a Professional Textile Fraternity. The objectives of Phi Psi Fraternity are
1. to promote good fellowship among congenial men and women of the Textile Schools and Colleges with textile departments;
2. to encourage a high standard in textile work; and
3. to assist, by every honorable means, the advancement of its members.

The standard pin of Phi Psi Fraternity is diamond shaped with a gold border and four perpendicular gold bars on a black face containing the Greek letters F and Y in gold.

The official shingle of Phi Psi Fraternity is engraved in black on a bond paper in Old English and Fluent Script. The shingle is embellished at the top with the official coat of arms in black and gold bearing the full name of the member with the name of his chapter and the date of his initiation. The shingle is signed by the Grand President and Grand Secretary and shall bear the Grand Council seal.

The official colors of the Fraternity are black and gold. The official flower of the Fraternity is the Yellow Tea Rose. The official motto in Latin is "Semper Ad Perfectum" meaning "Always Toward Perfection."

In 1902, a group of men at Philadelphia banded together and found what was to be the first textile fraternity, Delta Kappa Phi. One year later, several men at school felt the need for a similar organization, but one with slightly different aims and purposes. Consequently, Phi Psi Fraternity was founded at the Philadelphia Textile School, March 18, 1903 by Harold Hart, Charles Kalenbach, Henry Eddy, Robert Beanie, and Paul Benninghoffen. Beta followed at Lowell Textile School at Lowell, MA. On April 14, Phi Psi was incorporated in the State of Pennsylvania, with a perpetual charter by the five founders. In 1905, the first national convention was held. In 1906 the second National convention was held and the fraternity was organized on the national basis with constitution and bylaws drawn up, symbols selected, and purpose written: "The objectives of this fraternity shall be First to promote good fellowship among congenial men of the Textile Schools and Colleges with Textile Departments; Second, to encourage a high standard in textile work; Third to assist, by every honorable means, the advancement of its members." In 1909, growth continued with Delta Chapter organized at the Bradford-Durfee Textile School at Fall River. Epsilon Chapter was chartered in 1916 in the North Carolina State College at Raleigh, NC, but due to misunderstandings this charter was revoked by Grand Council in 1922. In May 1924, Eta Chapter was formed at North Carolina State College, and eight months later, Theta Chapter was formed at the Georgia Institute of Technology, Atlanta, Georgia. In May 1927, Iota Chapter was organized at Clemson College, South Carolina. In February 1931, Kappa Chapter was given a charter at the Texas Technological College at Lubbock, Texas. The last undergraduate chapter, Lambda, was formed at the Alabama Polytechnic Institute at Auburn, Alabama. Alumni Chapters were active in New York, Philadelphia, Providence, Chicago, Fall River, Greenville, Albany, New Bedford, Lanette, Atlanta, and Charlottesville. On May 5, 1961, the Charlottesville Alumni Chapter was discontinued and a new active chapter, Mu, was formed in Charlottesville at the Institute of Textile Technology.