Abstract: Disclosed are a polyester cotton-like yarn-dyed fabric, and a manufacturing method and application thereof. The polyester cotton-like yarn-dyed fabric is interwoven by warp and weft, the warp adopts dyed polyester as a covering layer and low-temperature spandex as a core-spun yarn of a core yarn, a weight ratio of the polyester to the low-temperature spandex is 4-49:1, and the polyester is subjected to alkali deweighting treatment to form an eroded surface. The polyester cotton-like yarn-dyed fabric has good cotton feeling, high elasticity, high color fastness and low ironing shrinkage rate, and is suitable for making high-quality clothing, especially shirts. The manufacturing method of the yarn-dyed fabric is energy-saving and emission-reducing, and can manufacture a novel polyester yarn-dyed fabric with low ironing shrinkage rate, high color fastness and cotton-like hand feeling. Use of the yarn-dyed fabric for making clothing such as shirts increases the selectivity and functionality.