This study investigated and characterized the physical properties and their influence on moisture management and stretch properties of underwear fabric made of different compositions of fibres. It is found that fabric made of finer filament yarn, having an open and porous structure, smaller stich length, and smaller thickness has higher air permeability, water vapour permeability, better moisture transport and overall moisture management capacity. It is also found that elastic recovery is higher in the wale direction in the case of weft-knitted fabrics. Furthermore, a fabric with longer stich length has higher stretch in both directions and more recovery in the wale direction. In addition, it is found that warp-knitted fabric has better moisture transport.