Abstract: The present panty is formed of first and second seamless tubular knit blanks each of which includes an inwardly turned welt on one end, a predetermined length of body yarn and inwardly contracted mock rib areas formed by incorporating elastic yarn therein. The inwardly contracted mock rib area of one seamless blank is much longer than the other and is adapted to form the crotch area of the panty. Cotton yarn is incorporated on the inwardly contracted mock rib areas and forms inwardly extending terry loops. The seamless blanks are longitudinally slit and then joined together by a transverse seam extending across and connecting the inwardly contracted mock rib areas and opposite side seams are formed along opposite sides of the body portions of each blank and the inwardly turned welts to complete the panty and join the waistband and form a waist opening.