This study investigated the structural coloration and fabric hand of the caustic reduced fabrics for emotional garment using structural color yarns, which was spun by 37 alternating nylon and polyester layers capable of producing basic colors using biomimetic technology. The colorations of the three kinds of structural color yarns were confirmed using multi angle spectro-photometer, and their triangular cross sections composed with 37 alternating nylon and polyester layers were measured using SEM and were discussed with layer length in relation with coloration and spinning conditions were also set up. The apparent color difference and reflectance of the three kinds of fabrics with different density and weave pattern were analysed as ranging from 400nm to 700nm. The optimum fabric structural design which is made by warp and weft densities(194ends/in ${ imes}$ 105picks/in) and caustic reduction condition by $100^{circ}C$ temperature and 60minutes with NaOH, 20g/l solution were decided through analysis of the mechanical properties and fabric hands of these three kinds of fabrics treated with 3 kinds of the caustic reduction conditions. And it was shown that the rate of caustic reduction was increased from 13% to 23% with increasing temperature and time of caustic reduction. The extensibility, bending rigidity and shear modulus of caustic reduction treated fabrics were decreased by treatment of caustic reduction, on the other hand fabric compressibility was increased. And it was shown that the hand value of specimen number one which was treated with temperature $100^{circ}C$ and time 60minute was the best and the hand of this fabric was better than that of Morpho $fabric^{(R)}$ made by Teijin co. Japan.