Usage patterns
タオルで〈物〉を拭くto wipe something with a towel
I wiped off my sweat with a towel.
タオルを絞るto wring out a towel
Please wring out the wet towel firmly.
タオルを〈場所〉にかけるto hang a towel on/at a place
I hung the towel on the hook.
タオルを〈人〉に巻くto wrap a towel around someone
I wrapped a towel around the baby.
Expressions
タオルを投げるthrow in the towel; give up; concede defeat