Mechanical properties and the long-term degradation properties of the recycled PET yarns are typically lower than the virgin PET yarns due to the contaminants coming from non-PET bottles, labels and caps etc. For environmental reasons, recycling of post-consumer polyester bottles into textile fibers has become commercially attractive. We studied mechanical and chemical recycling processes and examined their effects on yarn properties such as tensile properties, thermal characteristics, hydrolysis and photo-degradation. It was found that the virgin and the chemical recycled yarns with sufficient purification show similar processability, physical and mechanical properties, and long-term degradation behavior. The results provide useful information on recycled PET yarns for processability and serviceability for the high-end use.