The objective of this research work was to investigate the effect of steam temperature on the properties of false-twist draw-textured yarns produced at speeds of 1000 m/min, 1200 m/min, and 1500 m/min using false-twist draw-texturing system with waterjet twister/cooler and superheated steam heater. This method replaces the contact heater of a standard false-twist texturing machine with a ‘super-heated steam heater’ and the normal false-twisting device and cooler replaced with a ‘water-jet twister/cooler’, combined into one unit, so as to reduce the thread-line length and to increase the production speed significantly. The new heating, twisting and cooling unit is only one meter in length. The reduced thread path has significant advantages when the surging speed is considered. The shorter thread path reduces thread instability and so higher texturing speeds can be achieved. Since the water-jet twisting is virtually friction-free, and has no mechanical moving parts, the production speed can be increased, avoiding filament breaks. Polyester POY used in this study was textured at up to 1500 m/min, significantly higher texturing speeds than the standard commercial texturing speeds, while maintaining 40% bulk levels with good process stability. Achieving texturing speed up to 1500 m/min is a significant breakthrough in the false-twist draw-texturing. Therefore, outcome of this study will have a significant impact on false-twist draw-texturing research, particularly application of water-jet twisting as a non-friction medium of false-twisting to achieve higher production speeds.