Cotton and oil-based fibre consumption is highly problematic because the growth of these materials often requires fertilisers and toxic pesticides. Less environmentally damaging alternative fibres are urgently required. This study investigates Manila-hemp paper-yarn textile fabrics. Manila-hemp (abacá) is a species of banana grown as a commercial crop in the Philippines, Ecuador, and Costa Rica. Knitted structures of paper, cotton, viscose, and polyester yarns are tested and compared. Tensile strength tests are also performed. Paper yarn shows low shrinkage and no pilling, which are excellent characteristics for use in the textile and clothing industries. However, its poor handleability/knittability, high stiffness, and hard grip must be resolved for the widespread application of paper yarn in the textile industry in the future.