In order to optimize the color-changing effects of textile knife-coatings containing multi-layered mica pigments (effect pigments; EPs), the properties and structure of the coating formulation/layer during and after application were investigated. Three pigment coating formulations were prepared by first mixing the EP dispersion into a water-based polyurethane binder. Different types of rheology modifiers (RMs), liquid dispersion of sodium polyacrylates (LDPSAP), hydrophobically alkali swellable emulsions (HASEs) and hydrophobically modified ethoxylated polyurethane, were then added to the dispersion. The rheological behavior of the coating formulations was characterized in terms of the shear rate dependence of the viscosity. The formulations were applied onto the same type of textile substrate using a knife-coating technique. The choice of RM as well as variations in gap height and coating speed increased the solids deposit. The increased amount of coating deposits (thicker coating layers) corresponded to more and better dispersed EPs within the coated layer as well as more horizontally oriented platelets as confirmed by scanning electron microscopy. Multi-angle spectrophotometer measurements showed that the CIE L*a*b* color coordinates varied strongly depending on detection angle. The variations of the absolute values of L* and a* were more pronounced between –15° and 15° detection angles, corresponding to angles with the greatest visual color changes. The slowly coated samples with higher solids deposit were measured to be lighter and of higher chroma compared to samples coated at a higher speed. Generally, the color-changing effects were governed by the choice of RM and coating parameters in terms of variations of the amount of coating deposited onto the samples.