Abstract: Denim fabric and articles of clothing having a “washed” or heather look/effect are produced in a manner that retains color intensity and substantially avoids the waste of chemicals and/or water inherent in conventional washing processes. A first coarse feeder yarn of cotton and/or other natural fiber by ring or open end spinning, and then is continuously dyed (such as by indigo rope dyeing, slasher dyeing, or sheet dyeing). The dyed yarn is dried and then cut up into lengths of about four inches long or less (and opened if necessary) into individual fibers. The fibers are blended with other fibers (e.g. about 10-90% greige fibers) to produce a blended composite. The blended composite is then carded, spun into yarn, and woven into denim fabric having a washed look, or a heather effect, which then can be made into any suitable article. A second coarse yarn made similar to the first coarse yarn may be added to the blending station.