Yarn hairiness as a key factor affecting the appearance, handle and appeal characteristics of yarns and fabrics is of paramount importance. In fact not only yarn hairiness influences the post spinning textile operations but also affects handle and appearance of the resulted fabric and clothing. As far as woven fabrics are concerned, weaving performance of the yarn during weaving operation and warp breakage tendency vary in parallel to the level of yarn hairiness. In case of knitted fabrics, generation of fly is an additional effect which is caused by yarn hairiness. The pilling tendency of a knitted fabric is directly dependent on the hairiness level of its constituent yarns. Unsized single yarns are considered to be unsuitable to be employed as warp yarns. This is not due to inadequate strength of this type of yarn but rather it is due to their lack abrasion resistance which in turn is caused by their hairiness level. Yarn hairiness can be controlled by various methods such as air jet, compact spinning system, combing machine and yarn singeing. It must be emphasized that all the known methods proposed for reduction of yarn hairiness not only involves a more complicated textile machine but also increases the stages of yarn manufacturing process thus increasing the total production cost. Therefore, in order to present more economical and technically advance method, it becomes necessary to conduct research on this usually undesirable property of yarn. The aim of this work is to produce quality yarn with low hairiness level. This has been achieved by modification of a conventional carding machine. A simple air vacuum system was installed in the web forming zone the machine. This cost effective modification permits the production of a sliver which is greatly free from dust or short fibers. Thus due to low hairiness level of this type of yarn and its impact on environment the yarn produced hereafter is named Paya yarn. To establish the effectiveness of the system used, Paya yarn were employed to produce samples of plain knitted fabrics. Experiments were carried out to determine yarn properties such as tenacity, elongation at break, hairiness, evenness. Additionally properties such as pilling, gloss and surface roughness of the sample fabrics were evaluated. Based on the obtained results an optimum spinning condition was defined. A conventionally spun yarn was used as base yarn. Various properties of Paya yarn were compared with those of the base yarn. The results showed that while Paya yarn hairiness decreases by almost 20%, its tenacity, elongation at break and evenness are significantly improved.