Cloth diapers and disposable diapers are in use and depending upon the need of the individual families, they prefer either of the two, in combination.
Cloth diapers have come a long way from rubber pants and diaper pins. They come in many shapes and sizes.

Usual cloth diapers usually come prefolded or in a square and require pinning. More latest types are contoured like disposable diapers and come with Velcro closures or snaps. Other cloth-diapering accessories include absorbent liners (some are flushable), diaper doublers for extra protection at night and diaper covers to help prevent leaks. There are a number of benefits of cloth diapers, as indicated below.

Cost Savings: Initially, cloth diapers can seem to be costly, but in the over a period of time cloth diaper users are often ahead of expenditures. If the newborn goes through an average of 8-12 diapers a day and an older baby uses 6-8 diapers a day, the total cost for disposable diapers will keep rising and hence cloth diapers may be cost effective than disposable diapers. Cloth diapers are used again and again, instead of periodically having to be restored. Additionally, they can be reused for later child or even for household rags once the diaper days are over.

Better for Baby: Cloth diapers do not have many issues like diaper rash, irritated bottoms and other general complaints, that are inherent in disposable diapers. Fewer chemicals like Dioxin, Tributyl-tin (TBT), or polyacrylate get in touch with the baby's bottom and therefore the less likely they are to be sensitive. For a sensitive baby with allergies and skin sensitive, diapers with very natural, even organic, materials are preferred since they will reduce discomfort. They are very much baby friendly and softer on baby’s skins.

Environment/Eco friendly: Cloth diapers are better for the environment. According to the Real Diaper Association, majority of the disposable diapers, along with their refuse end up in landfills. It can take more than 100 years to decompose. Cloth diapers will break down in a short time.

Less Time in Diapers: When cloth diapers are used, it involves only lesser time for potty training or educating the child about EC - elimination communication, as they are more sensitive when they are wet.

Adorable: Cloth diapers are cute and available in natural fabrics, in fashion colors and prints.
They claim very few natural resources to manufacture.

Diaper services pick up used diapers and return them cleaned and folded, a well-suited alternative for busy parents of multiple kids.

New products like wraps and liners make it easier than ever to diaper babies.

Both cloth diapers and disposable diapers have favorable and unfavorable points. Although most parents choose disposable diapers because of their convenience, some parents opt for cloth diapers, which can be more within means if washed by themselves. Some families find a via media approach, using cloth diapers for newborns and disposables for more active children or using cloth diapers when in home and disposables when they go out. Further, new products and production techniques have increased options for both cloth and disposable diapers.

There is another group of people strongly advocating against the use of diapers and they have introduced the baby training pants and baby underwears in print knit fabrics exclusively for Diaper Free Baby. This is yet to receive good reception among the general mass and is in the progressing stage only.
Both cloth diapers and disposable diapers have plus and minus. Even though most parents choose disposable diapers because of their convenience, some parents opt for cloth diapers, which can be more reasonable if washed by themselves. Some families find a middle course approach, using cloth diapers for newborns and disposables for more active toddlers or using cloth diapers at home and disposables when they go out. Further, new products and production techniques have increased options for both cloth and disposable diapers.