This study examines the development of knitwear design using environmentally friendly Hanji (Korean traditional handmade paper) yarn. While its environmentally friendly features make Hanji yarn suitable for eco-fashion design, Hanji products, generally produced in limited quantities, are highly unlikely to become a commercial success due to their high prices. Therefore, a new technology allowing the production of low-cost Hanji yarn is in high demand, as is its application across multiple products in addition to knitwear. The significance of this study lies in that it suggests ways to design knitwear which reflect the versatility of modern eco-fashion to meet the needs of consumers. This study presents knitwear designs, specifically party wear and everyday fashion, that utilize the advantages of Hanji yarn and represent 2013 S/S color trends. Two outfits will be featured - one for women in their 20s and 30s and the other for women in their 30s and 40s. Also, this paper includes a literature review and an accounting of online research on Hanji yarn and eco-fashion designs.