Consumption of cotton and oil-based fibres types is a major problem because it needs the help of fertilizers and toxic pesticides to grow in many places. It is urgent to find less environmentally damaging alternative yarns for the manufacture of clothing and other textile products. This study investigates and gives information about textile fabrics of paper yarn made from Manila hemp. Knitted structures made of paper yarn; cotton and viscose are tested and compared. Also, a tensile strength test of the yarns is performed. The paper yarn has low shrinkage and no tendencies to pilling, great characteristics for fabrics to be used in the textile- and clothing industry. The handleability / knittability: a problem that has to be solved if the paper yarn is going to be used in the textile industry to a high extent in the future. Also, the high stiffness and hard grip of the paper yarn fabric must be solved