This study examines conventional wet-finishing processes applicable to fabrics containing recycled cotton fibers. The knitted fabrics were produced using open-end and compact yarns, with up to 80% of the cotton fibers being obtained from mechanical recycling of pre-consumer textile wastes. The study evaluated the effects of these finishing processes on the physical properties of the fabrics based on the recycled fiber ratio, yarn type, and yarn count. After determining the parameters for enzymatic bio-polishing, scouring, and color removal processes, two sequential finishing routes were designed: using the fabrics as mélange without a dyeing process (F1) or coloring them with color stripping and subsequent dyeing (F2). The resulting fabrics were tested for bursting strength, pilling resistance, weight, thickness, air permeability, and abrasion resistance, and the results were evaluated statistically. The study demonstrated that compact yarns provide superior strength, particularly when the F2 process was employed. The F2 process resulted in high pilling resistance and increased breathability of recycled knitted fabrics. The study concluded that the quality of fabrics containing recycled cotton fibers could be optimized by the selection of the appropriate finishing processes.