This study analyzed the physical properties and flame retardancy of Tencel FR/Cotton complex knit fabrics in order to satisfy two aspects of eco-friendliness and functionality. The flame retardant (FR) treatment of complex knit fabrics was applied by a pad-dry-cure method for additional functionality. Tensile strength, extension, bursting strength, LOI, and flame retardancy were measured by the KS (Korean Standard) K manual. The hand value knit fabrics were measured by KES-FB system. Subsequently, tensile strength and extension of wale and tensile strength of course increased in tandem with the Tencel FR yarn content. Tencel FR/Cotton complex knit fabrics were suitable for summer-weight and for baby clothes through the KES-FB system measurements. The bursting strength of Tencel FR/Cotton complex knit fabrics decreased as the contents of the Tencel FR increased; in addition, LOI increased as the contents of Tencel FR increased. This was due to the Tencel FR flame resistance function; however, the tensile strength decreased. The optimum fiber content of Tencel FR/cotton content was 1:1. The optimum conditions of flame retardant treatment were a treatment temperature $130^{circ}C$ and the concentration of finishing agent and assistance binder (AR4260) was 35% and 1%, respectively.