Paper yarn is an eco-friendly textile material which is light in weight, excellent in humidity control function and air permeability. It has a unique texture and touch because it contains filament yarn structure which is a high value-added natural material. In this study, the method for producing fine paper yarn, its tensile property and surface structure were studied. Paper sheets of 10, 12, $14;g/m^2$ were first prepared using manila hemp through the paper making process. The paper tape yarn and the paper yarn were continuously produced by using a micro-splitter and twister. As the weight and the cutting width of the paper tape increased, the tensile property (breaking stress and strain) increased. The produced paper yarn had a count number of $35-63N_m$ and a maximum breaking stress of $1.38{sim}1.54;gf/d$. It was also found that the optimal mixture ratio of the paper reinforcing agent for knitting and the twist number showing the maximum breaking stress of the paper yarn were nearly 0.6% and $750{sim}850;tpm$, respectively. The produced paper yarn can be used in home textiles such as bedding, table cloths and curtains, as well as fashion material.