Electroactive textile fibres and fabrics have been used in smart and interactive clothing for medical,military and sports applications. The improved surface properties of conductive textiles are required for their successful integration in all of the above mentioned applications. This paper presents the production of conductive poly(3,4-ethylenedioxythiophene) (PEDOT) coated viscose yarns in longer length, i.e. 5 m, and the surface modification of the coated yarns by treating with silicone solution. The structural properties of silicone coated conductive yarns were then investigated by Fourier transform infrared spectroscopy and thermogravimetric analysis. The effect of silicone coating on the mechanical, electrical and hydrophobic properties was also evaluated and then compared with the PEDOT coated viscose yarns without surface treatment. Results show that the mechanical and hydrophobic properties of conductive yarns were improved by surface modification with silicone without affecting their structural properties. The surface modified PEDOT coated yarns could be used as pressure and stretch sensors in health care applications.