Abstract: A method of composite yarn formed of a false twist crimped, heat set elastomeric core yarn intermingled with a false twist crimped, substantially heat set partially drawn, non-elastic yarn. The resulting composite yarn is substantially free of alternating "S" and "Z" twists, as well as voids. The composite yarn of the present invention is formed by increasing the number of turns per inch of the false twist and adjusting the operating conditions of the D/Y ratio, draw ratio of the elastic and non-elastic yarns, disc stacking, heat, and the machine speed to achieve a balanced or stable thread line.