Denim wears are being worn irrespective of demographic differences such as age, gender and social status. The scope for denim wear is increasing tremendously every year; furthermore its production and consumption has increased unpredictably in the last few decades. In order to give different performance characteristics to denim wears, various hybrid yarns are often used in denim fabric production. In this study, new elastic hybrid yarns were manufactured with different production methods and twist levels. Then the various physical properties such as unevenness, hairiness and tenacity were evaluated comparatively. In addition, the performances of developed hybrid yarns in denim fabric form, such as tensile strength, elongation, stretch properties, were also compared. The findings of study revealed that the production method and twist level of the. hybrid yarn have statistically significant influence on hairiness, breaking elongation values of the hybrid yarns and stretch properties of denim fabrics in which the hybrid yarns were used as weft yarn.