Abstract: Disclosed is a compound yarn with high absorbency, which is manufactured by twisting and compounding a plurality of yarns, and a fabric made therefrom. The compound yarn is characterized in that a core yarn of a polyester false twist yarn is compounded with floating yarns selected from the group consisting of a PET/nylon split yarn, a polyester false twist yarn and a natural fiber, around the core yarn, in which one strand of the core yarn is compounded with 5 or fewer strands of the floating yarns, and then the resulting yarn is compounded with a binder yarn of a polyester filament. Such a compound yarn of the invention imparts a high absorbency to a yarn or its fabric, thereby being applied for manufacture of clothes including bath robes, daily products including general cleaners such as washcloths and hair towels, and other cleaning cloths.